• Bell Lax pioneered no win no fee arrangements for commercial disputes. If you lose, we lose, therefore we always fight for you.

  • Bell Lax pioneered no win no fee arrangements for commercial disputes. If you lose, we lose, therefore we always fight for you.

Sutton Park National Nature Reserve. Britain’s largest urban park.

VAT on Business Assets With Private Use

It is very commom for a smaller business to have assets which have been acquired which are used for both business and private use.

Traditionally, this could be dealt with either by claiming only the percentage of the input VAT which corresponded to the percentage of business use or by claiming all the input VAT and then making a VAT charge (i.e. adding to the output VAT payable) for the private use on an ‘as you go’ basis. This latter method is called ‘Lennartz accounting’, after the VAT case that established the principle.

Following a Dutch VAT case, however, the use of Lennartz accounting has been considerably restricted.  HMRC 's current guidance on the correct  VAT treatment in such cases  is updated periodically.

Following Brexit, it is almost certain that VAT legislation will change significantly, although how such changes will manifest themselves is not yet known

 


The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.