With regard to the sale of a business (asset sale) and in particular capital allowances. Can you confirm my understanding is correct in respect of the below scenario please?
My client is the purchaser in this instance, the assets consist of goodwill and P & M. They have initially agreed an overall value for the business which of course incorporates both.
P & M is machines (company is an engineering co), surely the price allocated to P & M is disposal proceeds for vendor (which may create BA/BC) and subject to AIA (assuming limit not exceeded) for the buyer as it is not fixed P & M and not subject to any possible elections?
The vendor's accountant disagrees!