FA 2012 analysis: Capital allowances

Steven Bone

Capital allowances are changing, says Steven Bone

Finance Act 2012 ss 41–46 and their accompanying Schedules introduce a number of changes to the capital allowances rules.

However the change with the widest significance concerns claiming plant and machinery allowances for the purchase of second-hand fixtures (for example the fixtures element of freehold purchases).

Fixtures: how the rules work

FA 2012 s 43 and Sch 10 introduce new ss 187A and 187B into CAA 2001. These include serious obstacles that must be navigated before the buyer of a property can claim capital allowances for plant and machinery fixtures. If the new requirements are not met the result will be disastrous. Not only will the buyer lose the ability to claim capital allowances but so will any future owner of...

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Capital allowances are changing, says Steven Bone

Finance Act 2012 ss 41–46 and their accompanying Schedules introduce a number of changes to the capital allowances rules.

However the change with the widest significance concerns claiming plant and machinery allowances for the purchase of second-hand fixtures (for example the fixtures element of freehold purchases).