Dealing with S198 Claim aftermath

Dealing with S198 Claim aftermath

Didn't find your answer?

This must be a common one, so would appreciate confirmation on claiming the capital allowances.

The clients personally own commercial property that is let to their own limited company. In the tax year the property was sold to their own pension scheme and understandably a s198 election has been made to value to capital allowance pools at just £2. Being £1 each for the special pool and general pool.

That I understand.

So with a brought forward WDV of say £100,000 how do I treat/claim capital allowances in this tax year and possibly beyond?

Is it a case of continuing claims or a one off balancing allowance in the year of disposal? I have read many articles and examples witthout the true practical answer being confirmed.

To clarify the client owned two properties and has a sepeate CA comp for each property, with obviously one sold as above.

Replies (2)

Please login or register to join the discussion.

avatar
By User deleted
18th Jan 2014 21:12

Depends

Do the previous owners have a continuing property business? If yes, carry on writing down the pool(s) as normal. If that was the only property in the business, then it should be balancing allowance(s) in period of cessation.

Thanks (0)
avatar
By gavingr
19th Jan 2014 10:42

Thanks BKD, yes they still have one remaining property. 

Thanks (0)