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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 VIT25220); or

  • bring the goods partly within the business and apportion the tax incurred on them (see VIT25240); or

  • apportion the tax incurred on capital items of immoveable property (including construction services), ships, boats and other vessels, and aircraft (see VIT25260); or

  • treat certain types of goods as wholly business using the Lennartz mechanism (see VIT25280).