VATLP22570 - Option to tax: input tax and the option to tax: withdrawal of previous concessionary treatment ('quasi capital goods scheme')

Before 1 May 2010, when granting permission to opt, HMRC allowed taxpayers to recover pre-option input tax on capital expenditure that was of insufficient value to fall within the CGS.

This concessionary treatment was withdrawn with effect from 1 May 2010. From this date, taxpayers who obtain permission to opt can only recover input tax to the extent that it is allowable under the normal operation of the law (please see notice 706 Partial exemption and 706/2 Capital goods scheme for further information).