HMRC have issued Business Brief 16/16 clarifying its position on pre-registration input tax.
HMRC have issued a Brief clarifying their position on pre-registration input tax. Back in 2014, stories emerged of HMRC restricting input tax on certain assets on the basis of depreciation. This led to complaints of a change in policy. The current Brief refers to inconsistency with regards the word ‘consumed’.
In this Brief HMRC have confirmed the following policy on VAT recovery, subject to the normal rules:
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