188体育

CAA01/S270GC

A person who has the relevant interest and first makes use of a building may receive an additional VAT rebate in respect of his qualifying expenditure.

The person must reduce the original qualifying expenditure incurred on the building by the amount of the VAT rebate at the beginning of the chargeable period during which the rebate accrues. The amount of SBA given from the chargeable period in which the rebate accrues onwards will be computed on that reduced qualifying expenditure.

SBA already given in earlier chargeable periods is not revisited, but the total amount of SBA given is limited to the reduced qualifying expenditure and that limit will be reached in less than 33 1/3 years after the building is first brought into use.

Example

Bob constructs a workshop for 拢250,000 plus 拢50,000 VAT. He brings it into use immediately and claims SBA. He is restricted to recovery of 50% of the VAT he is charged so the SBA qualifying expenditure is 拢250,000 + 拢25,000 = 拢275,000. The annual SBA is 拢275,000 脳 3% = 拢8,250. In year six he changes the use of the workshop and accrues an additional VAT rebate of 拢2,500. His SBA qualifying expenditure then becomes 拢275,000 - 拢2,500 = 拢272,500 and the SBA given for this and future chargeable periods is 拢272,500 脳 3% = 拢8,175. After 33 years the total SBA given will be (拢8,250 脳 5) + (拢8,175 脳 28) = 拢270,150 and the maximum SBA claimable in the chargeable period in which the 33 1/3 year allowance period ends will be 拢272,500 - 拢270,150 = 拢2,350.