Statement of Practice D7
Published 31 March 1978
© Crown copyright 1978
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If VAT has been suffered on the purchase of an asset but that VAT is available for set-off in the purchaser’s VAT account, the cost of the asset for Capital Gains Tax will be the cost exclusive of VAT. Where no VAT set-off is available, the cost will be inclusive of the VAT borne. Where an asset is disposed of, any VAT chargeable will be disregarded in computing the capital gain.
Statement of Practice B1
Treatment of VAT for purposes of Income Tax and Corporation Tax.