Policy paper
Revenue and Customs Brief 6 (2022): Lennartz mechanism and VAT accounting
This brief explains what you must do if you've chosen to continue using the Lennartz mechanism and you entered the arrangement before 22 January 2010.
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This brief clarifies HMRC’s understanding of Finance (No 3) Act 2010, Schedule 8, paragraph 4.
In some circumstances, businesses who chose to keep the VAT recovered under the rules of the Lennartz mechanism before 22 January 2010, must continue to account for output tax on the non-business use of the asset.