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Thank you. Would you be so kind and comment on the second part of the question.
Under the rules of Capital Goods Scheme, which applies to our capital purchase, the above reclaim is monitored for ten years and can give rise to VAT assessment. For example, if we deregister for VAT or sell the building during this time, we can expect clawback from HMRC. Is this correct, please? Is this is a contingent liability on the company, and how much should we provide over the period of ten years? Is it a reducing liability each year, during the ten years?
Your answer is important to me. If a large tax bill is attached to the purchase I may have cancel the deal. Many thanks.
Great answer. So, as long as our taxable supplies remain zero rated (or standard rated) then there is no potential liability of clawback by HMRC of the original reclaim?