Part 3A

Business Premises Renovation Allowances
Chapter 10

ADDITIONAL VAT LIABILITIES AND REBATES

Additional VAT liabilities and initial allowances
360U
1
This section applies if—
a
a person was entitled to an initial allowance under this Part in respect of qualifying expenditure on a qualifying building,
b
that person incurs an additional
VAT
liability in respect of that expenditure, and
c
the additional
VAT
liability is incurred at a time when the qualifying building is, or is about to be, qualifying business premises.
2
If this section applies, the person entitled to the relevant interest is entitled to an initial allowance on the amount of the additional
VAT
liability.
3
The amount of the initial allowance is 100% of the amount of the additional
VAT
liability.
4
A person claiming an initial allowance under this section may require the allowance to be reduced to a specified amount.
5
The allowance is made for the chargeable period in which the additional
VAT
liability accrues.
S. 45H(2) modified (with effect in accordance with s. 167 of the amending Act) by Finance Act 2003 (c. 14) , Sch. 30 para. 7
Pt. 3A inserted (11.4.2007 with effect in accordance with s. 92 of the amending Act) by Finance Act 2005 (c. 7), Sch. 6 para. 1; S.I. 2007/949, art. 2