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Care and conservatory

05 May 2015 / Alun Oliver
Issue: 4499 / Categories: Comment & Analysis , Business , Capital allowances
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Capital allowances available on second-hand assets

KEY POINTS

  • The calculation of capital allowances for second-hand assets can cause confusion.
  • Could a conservatory built to protect a swimming pool be plant?
  • The tribunal comprehensively refuted the taxpayer’s four arguments.
  • The importance of a realistic interpretation of the CAA 2001 requirements.
  • There is no prescribed method of arriving at a “just and reasonable” apportionment of costs but all elements should be valued.

As reported in Taxation the First-tier Tribunal recently published its decision in Bowerswood House Retirement Home Limited v HMRC 2015 UKFTT 0094 TC.

The outcome of the case may not seem surprising but the decision does provide a useful reminder of the complexities of capital allowances in respect of second-hand assets.

Bowerswood House was once a private residential dwelling ...

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