Don't you also need an End User Certificate, Mark 1 ?
Yes you can claim back the VAT if the aircraft is used in a business, but the issues are similar (though less stringent) to the Benefit in Kind ones I referred to elsewhere. HMCE (or HMRC as they now are, but I mean the VAT man) will want to see a business plan, etc.
The problem is that if there is any significant amount of private use, the private user ends up being charged VAT, which makes the whole thing 17.5% more expensive.