Section 240 | Additional VAT liability

(1)This section applies if a person—

(a)was entitled to a balancing allowance for the final chargeable period for a short-life asset pool for a qualifying activity,

(b)has incurred, after the end of that period, an additional VAT liability in respect of the original expenditure on the provision of the short-life asset, and

(c)has not brought the liability into account in determining the amount of the balancing allowance.

(2)The person is entitled to a further balancing allowance, of an amount equal to the additional VAT liability, for the chargeable period of the qualifying activity in which the additional VAT liability accrues.