residual input tax

residual input tax
Input tax incurred by a business on goods and services used or to be used in making both taxable and exempt supplies. This value is apportioned between taxable and exempt supplies by the partial exemption method. HM Customs & Revenue Glossary

Financial and business terms. 2012.

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  • exempt input tax — Input tax incurred on goods and services purchased which are wholly used, or to be used, in making exempt supplies. After the method has been applied, this value will include the exempt element of residual input tax identified by the partial… …   Financial and business terms

  • taxable input tax — Input tax incurred on goods and services purchased which is wholly used or to be used in making taxable supplies. After the method has been applied, this value will include the taxable element of residual input tax identified by the partial… …   Financial and business terms

  • partial exemption method — A method used to apportion residual input tax. HM Customs & Revenue Glossary …   Financial and business terms

  • special method — ( Partial Exemption)A method for working out how much residual input tax a business can reclaim if the standard method does not produce a fair and reasonable result. HMRC must provide approval to use a special method. HM Customs & Revenue… …   Financial and business terms

  • standard method — This partial exemption method is available to all partly exempt businesses without seeking prior approval from us. standard method ( Partial Exemption) HM Customs & Revenue Glossary The normal method used to work out how much residual input tax a …   Financial and business terms

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