# Capital Allowances Act 2001, Section 240: Additional VAT liability


(1) This section applies if a person—
(a) was entitled to a balancing allowance for the final chargeable period for a short-life asset pool for a qualifying activity,
(b) has incurred, after the end of that period, an additional VAT liability in respect of the original expenditure on the provision of the short-life asset, and
(c) has not brought the liability into account in determining the amount of the balancing allowance.
(2) The person is entitled to a further balancing allowance, of an amount equal to the additional VAT liability, for the chargeable period of the qualifying activity in which the additional VAT liability accrues.

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Source: https://www.legislation.gov.uk/ukpga/2001/2/section/240 (the official version)
Page: https://openlegislation.uk/capital-allowances-act-2001/section-240
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.