What is the purpose of Value Added Tax Act 1994 Schedule 14 paragraph 11?

Paragraph 11 of Schedule 14 made consequential amendments to the Capital Allowances Act 1990, updating its cross-references to earlier VAT legislation so they pointed to the correct sections of the newly consolidated Value Added Tax Act 1994. This was a technical housekeeping measure with no change in policy or substance under United Kingdom law.

How does VAT affect the calculation of capital allowances in the United Kingdom?

When a VAT-registered business recovers input tax on an asset purchase, capital allowances are claimed on the VAT-exclusive cost. If the business cannot recover the VAT — for example because it makes only exempt supplies — capital allowances are claimed on the full VAT-inclusive amount. Paragraph 11 ensured these rules referenced the correct VAT Act provisions.

Is paragraph 11 of Schedule 14 to the VAT Act 1994 still in force?

No. The Capital Allowances Act 1990 was replaced by the Capital Allowances Act 2001, enacted through the Finance Act 2001. As a result, the amendments originally made by paragraph 11 are now spent, and the relevant cross-references to VAT legislation are contained in the 2001 capital allowances code instead.

Why were consequential amendments needed when the VAT Act 1994 was introduced?

The VAT Act 1994 consolidated and replaced earlier VAT legislation. Numerous other United Kingdom Acts contained cross-references to the old provisions. Schedule 14 made consequential amendments to those Acts, including the Capital Allowances Act 1990, so that existing cross-references continued to function correctly under the new consolidated statute.

Value Added Tax Act 1994 Schedule 14 para 11

Capital Allowances Act 1990 c.1

Schedule 14, paragraph 11 made consequential amendments to the Capital Allowances Act 1990 to ensure that capital allowances legislation worked correctly alongside the VAT Act 1994 when it was introduced.

This paragraph formed part of the consequential amendments schedule, updating cross-references in the Capital Allowances Act 1990 to align with the new VAT Act 1994.
The amendments ensured that provisions in capital allowances legislation referring to VAT pointed to the correct sections of the consolidated 1994 Act rather than earlier VAT legislation.
This was a technical housekeeping measure with no change in policy or substance — it simply kept the statute book consistent when VAT law was re-enacted in 1994.
The paragraph was subsequently affected by the Finance Act 2001, which replaced the Capital Allowances Act 1990 with the Capital Allowances Act 2001, rendering these amendments spent.

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