skip to navigationskip to main content

HMRC consultation on Partial Exemption and Capital Goods Scheme

Newsletter issue - August 2019.

At Spring Statement 2019, the government announced that it would launch a call for evidence exploring ways to improve the operation of Partial Exemption (PE) and the Capital Goods Scheme (CGS), following the findings of the 2017 Office of Tax Simplification (OTS) VAT review.

HMRC have now published the consultation document covering both subjects. These are two areas of VAT which can involve a significant amount of administration for businesses, with complex calculations often being required for some businesses to determine the amount of input tax that they are entitled to recover.

The call for evidence is split into three sections:

  • the first section looks at the process for applying Partial Exemption Special Methods (PESMs) and the possible ways in which this might be improved to reduce burdens for taxpayers and HMRC alike;
  • the second section explores how the current PE de minimis limit could be changed to aid simplification; and
  • the third section considers possible policy solutions to issues caused by the CGS.

The consultation will run until 26 September 2019, with further announcements on proposals for future changes expected in time for the Autumn 2019 Budget.

The consultation document can be found here.

request-a-callback

Request a callback

Let us know and we will be happy to call you back.

get-in-touch

Get in touch

Simple way to contact us. Just fill in a simple form.

free-consultation

Free Consultation

We will offer as much advice as we can.

our-services

Our services

Find out details about what we can do for you.

Keep up to date

Why not sign up to our newsletter and keep up to date with all thats happening @KPSK Accounts & Tax Limited.

Please read our Privacy Policy before signing up