Capital gains

Capital gains

Didn't find your answer?

If a company claimed capital allowances on a lift in a building could it still claim the gross cost of the lift against CGT when the building is sold?
Lee Moss

Replies (1)

Please login or register to join the discussion.

avatar
By User deleted
05th Sep 2007 13:53

It depends...
See Section 41 TCGA 1992. If there is a capital loss you reduce that by the net CAs claimed, which in a pool situation is cost minus disposal value, but if the building is sold at a gain you don't adjust for the CAs. However, you will need to put a part of the building sale price into the CA comp as disposal value. For this you need an apportionment of the sale price.

Note this is on the basis that the building and the lift are a single asset.

Thanks (0)