Andrew Needham looks at the VAT implication of selling a capital goods scheme item.
The capital goods scheme (CGS) is designed to adjust the amount of VAT claimed on a capital item during the ‘life’ of an asset to reflect its taxable business use.
The CGS applies to certain commercial property, some computer hardware and certain ships, boats and aircraft, and adjusts for taxable or exempt and non-business use of the capital asset. The adjustment period for property is ten years, and five years for other items. For most businesses, the real impact of the CGS
