- The Tribunal ruled that Aspire in the Community Services Ltd (ACSL) could recover pre-registration VAT in full, without adjustment for pre-registration use, under Regulation 111.
- HMRC’s approach of depreciating VAT recovery based on pre-registration exempt use was rejected; only post-registration use matters.
- The decision clarifies that once HMRC accepts VAT as input tax under Regulation 111, historic use cannot be considered for partial exemption calculations.
- This FTT decision, while not binding on others, may allow similar organisations to revisit and potentially increase past pre-registration VAT claims if HMRC previously restricted them.
Source: saffery.com
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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