Commentary on Sections Glossary History Section 447: Additional VAT liability treated as additional expenditure etc.
1573.This section is based on sections 137(1A), 138(1) and 159A(3) of CAA 1990.
1574.Subsection (1) treats the additional VAT liability as if it was capital expenditure on the same R&D. That is a necessary, but not sufficient, condition for the additional VAT liability to be qualifying expenditure.
1575.Subsection (2) excludes from subsection (1) additional VAT liabilities incurred after a certain time.
1576.Subsection (3) gives the chargeable period for which an allowance resulting from an additional VAT liability is to be made. The wording of subsection (3)(b) is related to section 441(2)(b). See Note 56 in Annex 2.