Sch 11A para 2A
(1) In this Schedule “ non-deductible tax ”, in relation to a taxable person, means— (a) input tax for which he is not entitled to credit under section 25, and (b) any VAT incurred by him which is not input tax and in respect of which he is not entitled to a refund from the Commissioners by virtue of any provision of this Act. (2) For the purposes of sub-paragraph (1)(b), the VAT “ incurred ” by a taxable person is— (a) VAT on the supply to him of any goods or services, (b) ... and (c) VAT paid or payable by him on the importation of any goods ... .