Section 116C — Value Added Tax Regulations 1995: Economic life of goods

Economic life of goods 116C Goods held or used for the purposes of a business have an economic life being (subject to regulations 116G and 116L) the period of time commencing on the day when they are first used for any purpose after they have been supplied to, or acquired or imported by, a person or any of his predecessors and lasting for a period of a 120 months in the case of land, a building or part of a building (but this is subject to regulation 116D);

b 60 months for all other goods. 116D Where the economic life of the interest of a person, or any of his predecessors, in land, a building or part of a building commences at a time when that interest has less than 120 months to run at that time, it shall be limited to the number of months remaining before expiry of that interest and element B of the formula in regulation 116E and element D of the formula in regulation 116L shall be construed accordingly.