Part 6

Research and development allowances
Chapter 4

Additional VAT liabilities and rebates

Additional VAT rebate generates disposal value
448
1
This section applies if—
a
a person has incurred qualifying expenditure, and
b
an additional VAT rebate is made to the person in respect of that expenditure.
2
But this section does not apply if by the time the rebate is made—
a
the person has ceased to own the asset representing that expenditure, or
b
that asset has been demolished or destroyed.
3
And this section does not apply if the rebate falls to be brought into account for the purpose of making allowances and charges under Part 2 or 3 (plant and machinery allowances and industrial buildings allowances).
4
The person must bring the amount of the rebate into account—
a
as a disposal value in respect of the qualifying expenditure for the appropriate chargeable period, or
b
if the person would have to bring a disposal value into account under section 443(1) in respect of that expenditure for that chargeable period, as an addition to that disposal value.
5
“Appropriate chargeable period” means—
a
the chargeable period in which the rebate accrues, or
b
if the rebate accrued before the chargeable period in which the relevant trade is set up and commenced, that chargeable period.