A client (Sole Trader) purchased a business last year. The business included a freehold property and within the sales documentation there was a note that the sale included integral plant and integral features valued at £20K and £15k respectively. Capital allowances have not been claimed on these amounts, I know WDA can be claimed at 18% and 8% respectively. Can AIA 's be claimed on these items?
Replies (4)
Please login or register to join the discussion.
Did the vendor satisfy the pooling requirement? and did your client and the vendor jointly elect for a specific value to apply for the purposes of both of their capital allowances computations?
Integral plant and features are fixtures, subject to the special rules on fixtures.
Yes you can
Yes, you can claim AIA on the amount specified in the joint election, assuming, of course, that the vendor and purchaser are not connected.