I have a client who is looking to set up his own company that will purchase the assets (Inc goodwill) of an unconnected, existing business (also a company). As far as the plant is concerned, the existing owner will have claimed AIA; will AIA be available to the prospective purchaser on whatever amount the 2 parties decide relates to plant?
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yes
I think the answer to this will be yes they can claim AIA. The logical reason being that depending on the disposal value the seller may need to bring in a balancing charge should they sell it for anything more than the tax written down vaue. Hence the plant will only be written down once during its economic life.
Can I ask whether the transaction involves any purchase of commercial premises?