Capital Allowances Act 2001 section 270GC

Additional VAT rebates

Section 270GC explains how structures and buildings allowances are adjusted when a person receives an additional VAT rebate relating to qualifying expenditure on which they are claiming allowances.

• Where a person claiming structures and buildings allowances receives an additional VAT rebate on their qualifying expenditure, the allowance must be recalculated to reflect the rebate.
• The qualifying expenditure is treated as reduced by the amount of the rebate from the beginning of the chargeable period in which the rebate accrues, affecting that period and all subsequent periods.
• The total allowance available over the life of the asset is capped at the qualifying expenditure (including any amounts added for additional VAT liabilities) minus any additional VAT rebates received.
• This cap on total allowances overrides both the general entitlement to structures and buildings allowances and the rules for treating additional VAT liabilities as qualifying expenditure.