The structures and buildings allowance is now two years old. Paul Farey (AECOM) examines an area of uncertainty in the legislation that has already become apparent.
During the consultation process covering the draft legislation for SBAs a main concern highlighted by participants related to the need to retain paperwork until the asset (i.e. the qualifying building or structure) is sold. This concern stems from the fact that the current owner of the asset must have an ‘allowance statement’ in order to claim SBAs. This document is produced by the first person to incur qualifying expenditure and must provide specific information as set out in CAA 2001 s 270IA. The allowance statement should therefore be passed on from seller to buyer each time an asset changes hands as evidence of the original spend.
Whilst it is still too early to tell whether this administrative necessity will create problems ...
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The structures and buildings allowance is now two years old. Paul Farey (AECOM) examines an area of uncertainty in the legislation that has already become apparent.
During the consultation process covering the draft legislation for SBAs a main concern highlighted by participants related to the need to retain paperwork until the asset (i.e. the qualifying building or structure) is sold. This concern stems from the fact that the current owner of the asset must have an ‘allowance statement’ in order to claim SBAs. This document is produced by the first person to incur qualifying expenditure and must provide specific information as set out in CAA 2001 s 270IA. The allowance statement should therefore be passed on from seller to buyer each time an asset changes hands as evidence of the original spend.
Whilst it is still too early to tell whether this administrative necessity will create problems ...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
