Revenue & Customs Brief 68/07

VAT: Assets used partly for non-business purposes – implementation of ‘Lennartz Accounting’ Regulations

At Budget 2007 a package of 3 measures was announced concerning the VAT treatment of assets to be used partly for non-business purposes - further details are set out in Budget Note 56. The ‘Lennartz Accounting’ regulations, referred to in section (b) under ‘General Description of the Measure’ in the Budget Note, came in to force on 1 November.

HMRC has produced detailed guidance, including worked examples, to accompany these regulations and this is available on VAT information Sheet 14/07. This replaces Business Brief 15/05, which has now been withdrawn.

Issued 14 November 2007