Sale of assets - availability of AIA to the purchaser

Sale of assets - availability of AIA to the...

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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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By GuestXXX
17th Mar 2015 16:56

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By plummy1
20th Apr 2014 00:13

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?

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By tellingd
20th Apr 2014 09:55

Thanks

Hi,

Thanks for taking the time to respond.  Stock isn't an issue here, and there is no intent by either party to set silly prices.

I haven't been able to see anything that precludes the purchaser claiming his own AIA on the plant and having others think the same gives me a little more confidence :-)

No premises - lease only, and the solicitors are currently 'tussling' over the terms.

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