Key VAT Updates 2025: Recovery, Grants, Exemptions, CGS Changes, and Care Home Structuring

• Reviewed key VAT topics from the year, including practical updates, common pitfalls, and planning tips.
• Emphasized the importance of tailored VAT recovery methods and closer reviews to reduce irrecoverable VAT.
• Highlighted the need for robust grant documentation to avoid unexpected VAT liabilities and potentially unlock recovery opportunities.
• Stressed the importance of regularly reviewing partial exemption and non-business methods to ensure they reflect current activities.
• Noted the upcoming increase in the Capital Goods Scheme threshold and advised clients to reassess property plans.
• Warned that HMRC is scrutinizing care home VAT structures, urging care provider clients to review their arrangements.

Source: thevatteam.co.uk

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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