Steven Bone on the technical and tactical considerations concerning section 198 elections for capital allowances purposes
Disposal values generally
When assets that have qualified for capital allowances are disposed of a ‘disposal value’ must be entered in the tax computation. This cannot exceed the taxpayer’s claim for that plant (CAA 2001 s 62). CAA 2001 deals with disposal values for plant generally at s 61 and for fixtures at s 196.
Establishing disposal values can be complicated when buildings are sold because the proceeds relate to a combination of assets. Some may qualify for capital allowances but could be chattels (that is loose) or fixtures that are subject to the rules contained in CAA 2001 Chapter 14 (ss 172–204). Additionally many assets will not have qualified for plant allowances. These include land (s 24) buildings and structures (ss 21-22) or the ‘premises’ in which...
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Steven Bone on the technical and tactical considerations concerning section 198 elections for capital allowances purposes
Disposal values generally
When assets that have qualified for capital allowances are disposed of a ‘disposal value’ must be entered in the tax computation. This cannot exceed the taxpayer’s claim for that plant (CAA 2001 s 62). CAA 2001 deals with disposal values for plant generally at s 61 and for fixtures at s 196.
Establishing disposal values can be complicated when buildings are sold because the proceeds relate to a combination of assets. Some may qualify for capital allowances but could be chattels (that is loose) or fixtures that are subject to the rules contained in CAA 2001 Chapter 14 (ss 172–204). Additionally many assets will not have qualified for plant allowances. These include land (s 24) buildings and structures (ss 21-22) or the ‘premises’ in which...
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If you do not subscribe but are a registered user, please enter your details in the following boxes:
