Section 448 | Additional VAT rebate generates disposal value

(1)This section applies if—

(a)a person has incurred qualifying expenditure, and

(b)an additional VAT rebate is made to the person in respect of that expenditure.

(2)But this section does not apply if by the time the rebate is made—

(a)the person has ceased to own the asset representing that expenditure, or

(b)that asset has been demolished or destroyed.

(3)And this section does not apply if the rebate falls to be brought into account for the purpose of making allowances and charges under Part 2 ... (plant and machinery allowances ...).^F1

(4)The person must bring the amount of the rebate into account—

(a)as a disposal value in respect of the qualifying expenditure for the appropriate chargeable period, or

(b)if the person would have to bring a disposal value into account under section 443(1) in respect of that expenditure for that chargeable period, as an addition to that disposal value.

(5)“Appropriate chargeable period” means—

(a)the chargeable period in which the rebate accrues, or

(b)if the rebate accrued before the chargeable period in which the relevant trade is set up and commenced, that chargeable period.