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Charitable ’copter

25 August 2009
Issue: 4220 / Categories: Forum & Feedback , VAT
The recovery of input tax on the expenses relating to the use of the taxpayer’s helicopter by a charity must be restricted because this is designated as private use

We have a client who purchased a helicopter and this is partly hired out and partly used for private flying with the corresponding private use adjustment in the business account/capital allowance claim.

VAT is being reclaimed on the business use under a Lennartz adjustment on each VAT return going forward.

Where private use arises there is also a record kept and a payment is made to HMRC each month to cover the duty on the aviation fuel.

Having allowed a charity to use his helicopter in the past our client would like to do more of this ‘charitable flying’.

However for VAT and fuel duty purposes (specific to this query) he has been advised that this is private use so he still has to account for VAT on the number of hours the charity uses the helicopter as a private uses adjustment and also account...

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