skip to navigationskip to main content

Phone: 01372 365 839 

Email:

HMRC consultation on Partial Exemption and Capital Goods Scheme

Newsletter issue - August 2019.

At Spring Statement 2019, the government announced that it would launch a call for evidence exploring ways to improve the operation of Partial Exemption (PE) and the Capital Goods Scheme (CGS), following the findings of the 2017 Office of Tax Simplification (OTS) VAT review.

HMRC have now published the consultation document covering both subjects. These are two areas of VAT which can involve a significant amount of administration for businesses, with complex calculations often being required for some businesses to determine the amount of input tax that they are entitled to recover.

The call for evidence is split into three sections:

  • the first section looks at the process for applying Partial Exemption Special Methods (PESMs) and the possible ways in which this might be improved to reduce burdens for taxpayers and HMRC alike;
  • the second section explores how the current PE de minimis limit could be changed to aid simplification; and
  • the third section considers possible policy solutions to issues caused by the CGS.

The consultation will run until 26 September 2019, with further announcements on proposals for future changes expected in time for the Autumn 2019 Budget.

The consultation document can be found here.

Choosing a Service

Choosing an accountant that matches your needs

What Our Clients Say

Read the reviews from some of our satisfied clients

Free Initial Consultation

Understanding your accountancy requirements

Request a Callback

Lets talk at a more convenient time for you

Great reasons and promises we make to you which is why you should call us before deciding on your accountant.

Our Promises

We’re a dedicated team which strives to provide success to our clients in regards to all their accountancy needs.

Meet our team