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HMRC internal manual

VAT Refunds

Four year cap - other provisions: Regulation 111 - Operation of time limit: Post-deregistration input tax

Regulation 111 of the VAT Regulations 1995 gives the Commissioners discretion to allow businesses to claim input tax incurred on services after deregistration, provided the services relate to the taxable business which was carried on prior to deregistration. 

Regulation 111(6) provides, however, that tax cannot be reclaimed more than three years after it was incurred.

Traders can claim deduction of input tax on services supplied to them after the cancellation of their registration provided the services were received for the purposes of their taxable business activities. Such services might include, for example, solicitors’ or accountants’ services.

Any such deduction will be subject to any partial exemption calculations the trader was operating prior to deregistration.