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.....
- Another transfer of property 82 2
- Is cloud accounting software all just pie in the sky 769 25
- VAT on non-denominated postage 188 7
- Taxi Plate & Car 35 1
- How can i allow my clients to digitally sign? 552 11
- New starter not showing on RTI FPS submission (MoneySoft payroll) 225 5
- LEL and PAYE registration 67 1
- Employmnet Allowance 2015/2016 131 2
- Tax refunds for 2014/15 166 1
- Where do Balance Sheet Gains get recognised in CT600? 855 40
- Tax relief for networking day out? 547 14
- SA316s 212 3
- Working in Iraq, how to treat the income 95 1
- Swiching tax 541 15
- Proposal to strike off...... 522 10
- Can I recharge Car loan interest 382 11
- Start-up cost recognition 120 1
- Lunches 288 3
- Mortgage Adviser's request 412 8
- Generic notification message 271 6
- Construction CIS LLP Company 611
- Services via intermediaries and new HMRC reporting requirements 592
- LIVE: Budget aftermath webinar 388
- Pensions Regulator 352
- NIC contribution on unremitted income 292
- Using the correct forms 267
- RTI - duplicate employee record 261
- SA penalty proposals 257
- Accelerated payment notices 237
- How hard is it to reduce a code? 232