½Û×ÓÊÓƵ

Partial exemption ― overview

Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance

Partial exemption ― overview

Produced by a Tolley Value Added Tax expert
Value Added Tax
Guidance
imgtext

This guidance provides an overview of the topic of partial exemption. Partial exemption is a core area for VAT purposes and one that a range of businesses may need to consider.

For an A to Z of key terms associated with partial exemption, see the A to Z of partial exemption guidance note.

For in-depth commentary on the legislation and case law on partial exemption, see De Voil Indirect Tax Service V3.460.

A video overview of partial exemption can be found below:

  1. •

    Partial exemption (A)

  2. •

    Partial exemption (B)

  3. •

    Partial exemption (C)

What is partial exemption?

A business that makes both taxable and exempt supplies is partially exempt. Broadly, VAT on costs related (or ‘attributable’) to taxable supplies is recoverable whilst VAT incurred on costs related to exempt supplies is irrecoverable (subject to some de minimis rules for negligible amount of exempt input tax). Partial exemption methods exist so that businesses can apportion their input tax between costs used for taxable activities (where VAT is recoverable) and costs used for exempt activities

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, and tax research, register for a free trial of Tolley+â„¢
Powered by

Popular Articles

Class 4 national insurance contributions

Class 4 national insurance contributionsWhat is Class 4 NIC?Class 2 and Class 4 national insurance contributions (NIC) are paid by self-employed individuals and partners in a partnership on their profits arising within the UK. This guidance note considers Class 4 contributions. For Class 2

14 Jul 2020 11:13 | Produced by Tolley Read more Read more

Winding up a trust ― legal, administrative and compliance issues

Winding up a trust ― legal, administrative and compliance issuesOverviewWhen winding up a trust, there are legal formalities and compliance issues that need to be dealt with, as well as IHT and CGT consequences that flow from the termination. This guidance note considers when and how a trust comes

14 Jul 2020 14:01 | Produced by Tolley Read more Read more

Long service awards

Long service awardsEmployee recognition by an employer can be an important motivational tool, as well as having a positive effect on retention. Most employer awards made to an employee are treated as taxable earnings under ITEPA 2003, s 62 or as a benefit under ITEPA 2003, s 201 because they are

14 Jul 2020 12:11 | Produced by Tolley Read more Read more