Forum Categories › GENERAL VAT DISCUSSIONS › What are the conditions for Capital Goods Scheme (CGS)? › Reply To: What are the conditions for Capital Goods Scheme (CGS)?
2 July 2019 at 16:07
#55910
VAT-adviser
Member
Capital Goods Scheme (CGS) applies where assets with long life which is partially exempt and is a :
(i) building >£250k – 10 years
(ii) £50 computer; ship etc; – 5 years
Recover % of taxable usage rate x input tax; annual adjust for prior years purchases, based on (OrigR – NewR)*input tax x n/10.
– Disposal test for CGS if asset sold below mkt value –repay input-output diff (rarely applied unless abusive]