.png)
.png)
Revised guidance from HMRC explains sampling as a basis of a claim for capital allowances on qualifying expenditure on fixtures.
The deparment is seeking comments on the drafted wording, which is set out in Revenue & Customs Brief (RCB) 24/12.
The taxman has in the past accepted in principle that sampling may be used as a basis of a claim for plant and machinery allowances (see the Capital Allowances Manual at CA20075).
But many businesses have submitted sampling proposals that were not statistically acceptable, largely because the sample size was too small, with the result the firms paid the incorrect amount of tax.
The proposed new guidance is considerably more detailed than the original and aims to give further help on sampling, which will limit uncertainty.
It is also intended to reassure both business and HMRC that the estimate of qualifying expenditure on fixtures derived from sampling is of acceptable accuracy.
Comments should be submitted by 31 October. Delivery options are presented at the foot of RCB 24/12.
