Fixtures & Fittings

Question 1

Condition

Answer 1

A claim for CA on F&F i sonly possible where the seller has either made a CA claim previously or the cost of the F&F have been allocated to a CA pool (not necessarily claimed CA)

Question 2

Amount

Answer 2

The amount on which the purchaser can claim CA is equal to the amount brought in as disposal proceeds by the seller

Question 3

How

Answer 3

A claim is only possible if the seller and the purchaser make a joint election under S198 to apportion part of the purchase price to the F&F within 2 years of the transaction

Question 4

How (Or)

Answer 4

Alternately either party can apply to the tribunal to determine the disposal value within 2 years

Question 5

Rule

Answer 5

The amount allocated cannot exceed the sellers original qualifying expenditure (cost)

Question 6

What if there is a loss on disposal and CA have been claimed on F&F

Answer 6

The loss is restricted by the amount of capital allowances retained (this calculation cannot cause a gain but make the loss nil)