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HMRC internal manual

VAT Cost Sharing Exemption Manual

How the conditions are to be interpreted: ‘Directly Necessary’ services: Annual adjustments and error correction (guidance effective from 15 August 2018)

Where the actual percentage used is adjusted by the CSG member as part of any partial exemption annual adjustment or error correction, the member must notify the CSG no later than the first accounting period after the adjustment is determined/error identified. The CSG must issue a credit/debit note reflecting any adjustment no later than the first accounting period after the CSG member has notified the CSG that an adjustment is required.