A and B have built an industrial unit which is let to the trading company jointly owned by them. The building was on contaminated land originally and cost were incurred to " investigate and clean" the site. The building itself will clearly have some "plant" costs included in the costruction and finishing spend. Can the partners A and B claim capital allowances on the "plant" as well as industrial building allowance and the special relief for decontamination costs (150%)and offset this against the rent received from their limited company tenant (a fair commercial rent has been set). Is the loss arising available only against other letting income in the year and going forward?
drew hay
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The Contaminated land relief is only available to companies and not individuals and cannot be claimed where the potential claimant contaminated the land themselves. IE you buy land and decontaminate it - fine. You already own land and allow the contaminents to stay there, then you decontaminate it - your delay caused part of the contamination and the elief can't be claimed.
See - http://www.hmrc.gov.uk/manuals/cirdmanual/cird60055.htm
CAs on plant are a possibility of course, but the allowable expenditure for IBA purposes would be reduced by the amount of the claim - it is likely that it may fall foul of th finance leasing ruless in this year's FBill as wwell so that CAs would only be available to the lessee - have done any research on this though.