If your business is involved in making both taxable and exempt supplies then you need to understand the complex rules around partial exemption. This course provides an in-depth understanding of partial exemption, building on key principles and providing a good grounding in the mechanics of partial exemption.
The course will help you determine exactly what VAT your business can recover under the partial exemption rules, helping you to understand how partial exemption can affect your business in terms of VAT recovery and common pitfalls. It offers practical advice and understanding on the differences between the standard method and special methods.
The course also explains some of the more complicated areas including the capital goods scheme, direct attribution, apportionment, change of use/intention and “first use” principle. There are a number of “worked examples” used to clearly show how partial exemption and the capital goods scheme works in practice and also reference to recent case law.
This course is a complete guide and explains everything you need to know about partial exemption and related topics, including:
- What is Partial Exemption?
- Key definitions
- Direct attribution
- Apportionment
- Standard method of partial exemption
- Values included/excluded
- Special methods –
- Types of special methods
- Sectorised methods
- Approval from HMRC
- Direction by HMRC
- Deminimis limits and implications
- Annual adjustments
- Standard Method Override
- Special Method Override
- Change of use – payback/clawback
- Capital Goods Scheme
- Special situations
- Anti-avoidance rules
