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HMRC internal manual

Capital Allowances Manual

From
HM Revenue & Customs
Updated
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RDA: Additional VAT

CAA01/S446 - S449

Give RDA on an additional VAT liability incurred on an research and development asset provided that the person who incurred the original expenditure on the asset still owns it and the asset has not been demolished or destroyed.

Treat an additional VAT rebate as a disposal value provided that the person who incurred the original expenditure on the asset still owns it and the asset has not been demolished or destroyed.

If there is no unclaimed RDA treat the additional VAT rebate as a balancing charge. If there is unclaimed RDA and the additional VAT rebate is less than the unclaimed RDA deduct the additional VAT rebate from the unclaimed RDA and treat the result as the unclaimed RDA for future disposal events. If the additional VAT rebate is more than the unclaimed RDA treat the difference as a balancing charge. In a case like that there is no unclaimed RDA for future disposal events.