Second Hand Fixtures
My client is in the process on purchasing a second hand commercial building within which are contained a number of integral fixtures such as lifts.
The seller is a property developer and as such has held the property in trading stock throughout the ownership period (owned since pre April 2012). Therefore no capital allowances have been available to be claimed by the seller.
Upon purchase, my client would like to claim capital allowances however the legislation contained within FA2012 must be considered for himself (and future potential claimants) however it is not clear to me what the requirements are in this situation.
No valid S198 election is possible as the seller was not entitled to claim capital allowances and so brings no disposal value in under CAA2001 S196 however where does this leave my client, the purchaser in respect of future claims and expenditure to claim allowances on?
The seller previusly bought the property from a receivor and to their knowledge no one previously has claimed capital allowances on these fixtures, however this is not known with any certainty.
Is it just a matter of obtaining a fair value apportionment of the fixtures value and then allowances are available to the purchaser on this value? Is this the only requirement even though it is not known whether any claims have previously been made?
Thanks in advance for any thoughts.....
- NI Contributions in order to claim state pension 187 4
- Failure to operate PAYE 1,057 27
- Lack of Quickbooks Online Coverage 250 4
- How does the tax payer dis-apply/disclaim from use of their personal allowance? 521 13
- Client with enquiry inro careless or negligent tax return 861 23
- Classic cars investment 354 10
- break even point 688 20
- Asset holding company 270 6
- How much to charge? 461 7
- National Insurance Contributions 126 1
- VAT GUIDE - 22-25 AGENTS OR EQUIVALENT 320 6
- Growing Limited Company concerned about assets if something goes wrong 282 1
- I think I'm developing an anger issue 3,032 36
- HMRC Getting Extra Tough? 837 8
- IR 35 deemed payment calc 237 5
- Gift or Capital Gain? 452 13
- SA302s - Lenders to accept non hmrc copies 667 9
- HMRC - Sage Backup 269 5
- Abandoning accountancy membership in order to operate as a sole trader 1,192 29
- BrightPay 752 23
- Possible Partnership? 480
- Tax and accounting treatment on long lease granted from freehold 452
- Lunatics in charge of the asylum - Bluestone 448
- New Fangled Penalties 259
- Purchase of property freehold - capitalisation of costs 245
- Clubs and Taxable Income 234
- Subsistence and hotel expenses 231
- Deferring taxable income until after 5 April 222
- Loans to other companies 179
- Tasbook email configuration 167