Is it input tax: mixed use of goods
You should check the other guidance available on GOV.UK from HMRC as Brexit updates to those pages are being prioritised before manuals.
A business that incurs tax on goods (including any interest in land) it intends to use for both:
- business purposes; and
- non-business or private purposes
has a choice as to how to treat those goods for VAT purposes. A business might:
- leave the goods wholly outside the business and treat them as wholly private or non-business assets (see VIT25220); or
- bring the goods partly within the business and apportion the tax incurred on them (see VIT25240); or
- apportion the tax incurred on capital items of immoveable property (including construction services), ships, boats and other vessels, and aircraft (see VIT25260); or
- treat certain types of goods as wholly business using the Lennartz mechanism (see VIT25280).