VATDREG09200 - Values of supplies and acquisitions: value of capital assets in determining taxable turnover

Schedule 1, Paragraph 4(3) provides that, when we are considering the level of taxable turnover, we may disregard the value of supplies attributable to the disposal of capital assets previously used by the trader in the business.

There are exceptions to this general rule in the following circumstances:

• Capital assets that are an interest in, right over or licence to occupy any land where the supply would be taxable other than at the zero rate.
• Supplies to which Schedule 3A refers.