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Capital allowances on second hand assets

My client has purchased a nursery and within the purchase price some assets were purchased. Some of the assets were cotton wool and other consumables, but there were also book shelves (moveable) slides and other fixed assets. Is it possible to claim AIA on these assets?


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22nd Nov 2012 20:44

My thought is yes
If your client has purchased the business from the existing owner, and not the limited company itself, I would say that you can.
You should ensure that if you have an all inclusive price for the sale that an amount is agreed with the seller as to the split between assets, consumables, and goodwill. This should also be written down and be good proof.

If anyone else has thoughts I would be interested to hear too.

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By imbs
22nd Nov 2012 20:55

I agree
Just like with any business acquisition, I'd have thought you'd just bring in the FFE at their allocated portion on the purchase price and applied AIA to it.

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By plummy1
22nd Nov 2012 21:37

Capital Allowances on the Buildings

Depending on how much your client has paid for the nursery you could take the proactive step of looking at undertaking a full capital allowances claim on fixtures and fittings. This would cover integral features such as electrical systems, heating and ventilation systems, cold and hot water systems plus the usual things such as, fire alarm systems, cctv, sanitary ware etc.  

The items you have listed above may form a very small percentage of what could be claimed if you are prepared to use the services of a specialist tax surveyor. 

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