VAT Partial Exemption Guidance

PE10500 - Partial Exemption (PE) basics: introduction

Scope of this guidance

Partial exemption in the Department: Roles and responsibilities

Scope of this guidance

Our books of guidance are the main reference material for people in the Department. All HMRC formal procedures and work systems are outlined in these books, which give managers and staff the Department’s rules and guidelines and general advice on interpreting them. The guidance is aimed at HMRC staff and should not be relied upon by businesses in calculating their taxes and duties.

This guidance should be read in conjunction with Notices 706 Partial Exemption and 706/2 Capital Goods Scheme. It does not attempt to repeat what is covered there but rather to address further areas. It covers most areas of partial exemption and the Capital Goods Scheme.

As partial exemption is a mechanism in the calculation of deductible input tax, rather than a trade sector or liability related subject, it has overlaps and interactions with many other parts of guidance. If, having looked in this and other parts of the guidance, you are unable to find the answer to any queries then further assistance is available as set out below.

Partial exemption in the Department: Roles and responsibilities

There is a national network of resources available to help resolve PE queries and assist in visiting PE businesses and negotiating PE methods. It will help to ensure that resources are available when needed if requests can be made as early as possible but every effort will be made to provide help whenever it is requested. These resources are:

Title	Function
PE & Business/ Non business Unit of Expertise	There is a national resource, the PE Unit of Expertise (UoE), that handles general and specific enquiries relating to partial exemption.
	Full answers will be promptly given whenever possible and queries that require policy input will be passed on appropriately.
	The UoE acts as a conduit for information dissemination to and from the policy team in the Indirect Tax Directorate. UoE members will attend meetings or assist in training events nationally as required.
	The UoE has a SharePoint page which can be accessed on the CCG Partial Exemption Community SharePoint.
Other UoEs	As PE is a wide-ranging topic other UoEs will be good resources in many cases. Other UoEs that may be able to provide useful assistance include those for Land & Property, Finance and Education.
iTAPE teams	There is a national network of iTAPE (Indirect Tax Avoidance and Partial Exemption) teams. Resources from these teams can be called on for help in assuring partly exempt businesses.
Indirect Tax Directorate	Policy responsibility for PE rests with the VAT Deductions Policy team. Any queries that this guidance does not provide answers to, and the above resources have not assisted with, should be referred through the Indirect Tax Directorate VAT Advisory Team in the normal way.