Section 33 bodies: capital projects and other adjustments: background
Prior to 1995 capital projects that resulted in mixed supplies, that is a mixture of exempt and non-business activities, were excluded from section 33 calculations. However, following the High Court decision in Haringey Borough Council (QB  STC 830) capital projects giving rise to mixed supplies have been included.
This was subject to a transitional relief under which the calculation excluded projects:
- whose costs exceeded £1 million that had been included in the capital programme, or otherwise approved, prior to 1 September 1995, or
- costing no more than £1 million that had been included in the capital programme, or otherwise approved, prior to 1 April 1997.