VIT25200 | Is it input tax: mixed use of goods
From HM Revenue & Customs · VAT Input Tax
A business that incurs tax on goods (including any interest in land) it intends to use for both:
business purposes; and
non-business or private purposes
has a choice as to how to treat those goods for VAT purposes. A business might:
leave the goods wholly outside the business and treat them as wholly private or non-business assets (see ); or
bring the goods partly within the business and apportion the tax incurred on them (see ); or
apportion the tax incurred on capital items of immoveable property (including construction services), ships, boats and other vessels, and aircraft (see ); or
treat certain types of goods as wholly business using the Lennartz mechanism (see ).