Equations

Question 1

VAT due on the assignment (or surrender) of a legacy lease

Answer 1

= (Total VAT incurred on acquisition * (Number of full years remaining in property VAT life + 1) / Total number of year in VAT life

Where VAT life >20 years, use 20 as denominator

Question 2

Capital Goods Scheme:

Base Tax Amount

Answer 2

= Total tax incurred / Number of intervals

Question 3

Capital Goods Scheme:

Reference Deduction Amount

Answer 3

= Total reviewed deductible amount / Number of intervals

Question 4

Capital Goods Scheme:

Interval Deductible Amount

Answer 4

= Base tax amount * proportion of deductible use

Question 5

Capital Goods Scheme:

Adjustment

Answer 5

= Reference deduction amount - Interval deductible amount

= (Total reviewed deductible / Number of intervals) - ( Base tax amount * proportion of deductible use)

Question 6

Capital Goods Scheme:

Big Swing Adjustment

Answer 6

= (Reference deductible amount - Interval deductible amount) * (Number of full remaining intervals + 1)