Part 3A

Business Premises Renovation Allowances
Chapter 10

ADDITIONAL VAT LIABILITIES AND REBATES

Additional VAT rebates and balancing adjustments
360X
1
If an additional
VAT
rebate is made in respect of qualifying expenditure to the person entitled to the relevant interest in relation to that qualifying expenditure—
a
the making of the rebate is a balancing event for the purposes of this Part, but
b
the making of balancing adjustments as a result of the event is subject to subsections (2) and (3).
2
No balancing allowance is to be made as a result of the event.
3
A balancing charge is not to be made as a result of the event unless—
a
the amount of the additional
VAT
rebate is more than the amount of the residue of qualifying expenditure immediately before the time when the rebate accrues, or
b
there is no such residue.
4
The amount of the balancing charge is—
a
the amount of the difference, or
b
the amount of the rebate (if there is no residue).
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