Incorporation of a partnership - Capital allowances

Incorporation of a partnership - Capital...

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I have a client who has recently transferred all of his trade and assets from a partnership into a new limited company.  I was wondering whether the company was entitled to claim the Annual Investment Allowance on the assets which it was acquiring from the partnership obviously the two entities are connected and the company is controlled by the individuals who were also partners in the partnership.

This was not their motive for incorporating and so I am not sure whether it falls foul of the anti avoidance legislation. 

Any thoughts greatly appreciated

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By cathygrimmer
18th May 2011 13:02

No!

Sadly no AIA can be claimed on assets purchased from connected parties. Nice try though!

Cathy

[email protected]

 

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