VAT Property Solutions
Note: 52
The clawback adjustment must be based on the house builder's 'realistic expectation', judged at the time his original plans were set aside. (See Glossary). The adjustment is calculated by comparing the amount of input tax deducted at the time with what the deduction would have been had the new intention been in place. The clawback is the difference between the two amounts. It is either calculated by reference to the existing partial exemption method or where no method is in place by an alternative 'fair' method based for example on estimated eventual sale value divided by estmated eventual sale value plus predicted short term rents. Contact 4 Eyes Ltd if this is relevant.
Contact: info@4eyesltd.co.uk Telephone: Phillip Henwood - 0044 (0)7793 707 839
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