Capital goods scheme (CGS) ― dealing with the disposal of assets and other areas of difficulty

Produced by a Tolley Value Added Tax expert

Value Added Tax

Guidance

This guidance note examines how to apply the CGS when assets are disposed of within the adjustment period, as well as some other common areas of difficulty.

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

For detail on how CGS adjustments are calculated, see the Capital goods scheme (CGS) ― intervals and adjustments 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 used.

For

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

Double tax relief

Double tax reliefWhen income arises in a foreign country to a UK resident company and that income is taxable in that foreign country, the UK may give the company relief for the foreign tax by crediting the foreign tax against the UK tax charged on that income. This might include withholding tax on

14 Jul 2020 11:31 | Produced by Tolley Read more

Personal Tax

Gilts

Gilts‘Gilts’ are securities that are also known by a number of different names (eg gilt-edged securities, Government securities or treasury stock).The Government sells gilts to fund the deficit between public spending and tax receipts. Normally, the Government pays interest to the holder of the gilt

14 Jul 2020 11:48 | Produced by Tolley Read more

Corporation Tax

Computation of corporation tax

Computation of corporation taxCompanies pay corporation tax on the taxable total profits (TTP) generated in a chargeable accounting period (CAP).To ascertain whether the entity is within the charge to corporation tax, see the Charge to corporation tax guidance note.For more information on the type

14 Jul 2020 11:16 | Produced by Tolley Read more

UU��ֱ��