For the last 43 years firms who registered for VAT were able to claim back VAT paid on stocks and assets held at the date of registration. HMRC have changed its interpretation of the rules to a “pro rata” basis. For example a van bought by a business a year prior to registration which the business intends to use for three more years will only be entitled to claim back ¾ of the VAT paid.
VAT refund rules changed
26 Oct, 2015