Part 2 Plant and machinery allowances
Chapter 18 Additional VAT liabilities and rebates
Short-life assets: balancing allowance
240 Additional VAT liability
(1)
This section applies if a person—
(a)
was entitled to a balancing allowance for the final chargeable period for a short-life asset pool for a qualifying activity,
(b)
has incurred, after the end of that period, an additional VAT liability in respect of the original expenditure on the provision of the short-life asset, and
(c)
has not brought the liability into account in determining the amount of the balancing allowance.
(2)
The person is entitled to a further balancing allowance, of an amount equal to the additional VAT liability, for the chargeable period of the qualifying activity in which the additional VAT liability accrues.