Capital goods scheme (CGS) ― intervals and adjustments

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note examines when and how CGS adjustments are made and the duration of the CGS adjustment period.

For an overview of the CGS more broadly, see the Capital goods scheme (CGS) ― overview guidance note.

For details of how to apply the CGS when assets are disposed of, and other common areas of difficulty see the Capital goods scheme (CGS) ― dealing with the disposal of assets and other areas of difficulty guidance note

In-depth commentary on the CGS can be found in De Voil Indirect Tax Service V3.470.

When are CGS adjustments required?

In broad terms, the CGS requires that the use of certain ‘capital items’ is monitored over a period of time (otherwise known as an ‘adjustment period’). If, during this adjustment period, the use of the capital items changes then an adjustment must be made to the amount of input tax which was initially recovered on the capital item. This adjustment is designed to reflect the change in the way that the capital item is being

Continue reading the full document

To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+™

TAKE A FREE TRIAL NOW

Popular Articles

Corporation Tax

Research and development expenditure credit (RDEC)

Research and development expenditure credit (RDEC)This guidance note provides information on how research and development expenditure credits (RDEC) are calculated and utilised. The Qualifying expenditure for R&D tax relief guidance note provides information on what expenditure qualifies for

14 Jul 2020 13:24 | Produced by Tolley in association with Will Sweeney Read more

Value Added Tax

Payments on account (POA)

Payments on account (POA)This guidance note provides and overview of the payments on account regime (POA). More in depth commentary can be found in De Voil Indirect Tax Service V5.110.What are payments on account?VAT registered businesses with an annual VAT liability of more than £2.3m are required

14 Jul 2020 12:52 | Produced by Tolley Read more

Value Added Tax

VAT registration ― change of VAT registration details

VAT registration ― change of VAT registration detailsVAT registered persons must keep their VAT registration details up to date and notify HMRC of any changes. Failure to notify HMRC by the relevant time could result in a penalty. For guidance regarding penalties for failure to notify please see the

14 Jul 2020 13:57 | Produced by Tolley Read more

��˾��ҹ��