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HMRC internal manual

VAT Refunds

Four year cap other provisions: Regulation 115 - Capital goods scheme adjustments: The law

Regulation 115 of the VAT Regulations 1995 provides as follows. The time limits are contained in paragraph (8). The whole of the regulation is set out below however so that the time limit is seen in context.

“115—

 

(1) …

 

(2) …

 

(3) …

 

(3A) …

 

(3B) …

 

(4) …

 

(5) …

(6) Subject to paragraph (8) below a taxable person claiming any amount pursuant to paragraph (1) above, or liable to pay any amount pursuant to paragraph (2) above, shall include such amount in a return for the second prescribed accounting period next following the interval to which that amount relates, except where the Commissioners allow another return to be used for this purpose, provided that where an interval has come to an end under [regulation 114(5A)—

(a) because the owner of the capital item has ceased to be a member of a group under section 43 of the Act, any amount claimable from the Commissioners or payable to them (as the case may be) in respect of that interval shall be included in a return for that group for the second prescribed accounting period after the end of the tax year of the group in which the interval in question fell, or

(b) because the owner has transferred part of his business as a going concern, and he remains a registered person after the transfer, any amount claimable from the Commissioners or payable to them (as the case may be) in respect of that interval shall be included in a return by him for the second prescribed accounting period after the end of his tax year in which the interval in question fell,

except where the Commissioners allow another return to be used for this purpose.

(7) Subject to paragraph (8) below a taxable person claiming any amount or amounts, or liable to pay any amount or amounts, pursuant to paragraph (3) above, shall include such amount or amounts in a return for the second prescribed accounting period next following the interval in which the supply (or deemed supply) in question takes place except where the Commissioners allow another return to be used for this purpose.

(8) For the purposes of paragraphs (9) and (10) below, a “specified return” means a return specified —

(a) in paragraph (6) above,

(b) in subparagraph (a) or (b) of that paragraph, or

(c) in paragraph (7) above.

(9) Subject to paragraph (10) below, the Commissioners shall not allow the taxable person to use a return other than a specified return unless it is the return for a prescribed accounting period commencing within 4 years of the end of the prescribed accounting period to which the specified return relates.

(10) The Commissioners shall not allow the taxable person to use a return other than a specified return where the specified return is the return for a prescribed accounting period finishing on or before 31st March 2006.”