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Lift Shafts and Capital Allowances

Lift Shafts and Capital Allowances

I have been asked the question as to whether a lift shaft in a new building qualifies for capital allowances.

Tolley's Tax Data tells me that a lift shaft is treated as a building and therefore does not qualify. This corresponds to Section 25 of the Inland Revenue's Capital Allowances manual.

However, Tolley's Tax Data goes on to tell me that Lifts and Lift Shafts both qualify for capital allowances based on case law, Revenue Practice, etc.

Am I missing something?

Has the Inland Revenue not updated their Manual with respect to the results of case law?

Robert Barr


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By rmason
05th Jun 2003 20:31

New vs old building distinction

Based upon a case I dealt with several years ago now, the situation was essentially that putting lift shaft into a building that had been built without a lift qualified, but the cost of putting one into a newly constructed building didn't. I recall checking it to the the Revenue Manuals at the time, and as this was a refurb of an existing building the allowances were granted once the requisite paragraph was quoted to the Inspector. This was pre FA 1994, but I don't think that the position changed as a result of that Act.

I've just checked the CA Manual, and it still accords with the above, referring to what is now Section 25 CAA 2001.

Richard Mason

Craggs & Co, Tax Advisers

Leeds- tel: 0113 380 7600 - fax: 0113 380 7608
London-tel: 0207 554 9930 - fax: 0207 554 9938

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