The treatment of receipts by a company for integral features in trading premises.
We act for a trading company X Ltd. In April 2015 it was sold by its sole shareholder (Mr B) to third-party investors. Immediately after sale Mr B agreed to buy the trading premises owned and occupied by the trading company and subsequently lease them back to the company under its new ownership.
The company had previously made a capital allowances claim of £20 000 on integral features in 2011. Because a balance of the annual investment allowance (AIA) was available this was claimed rather than including this amount in the special rate pool.
An election under CAA 2001 s 198 has now been signed and a value affixed to the integral features of £7 000 between both parties. There is no balance brought forward in the special rate pool but there are assets (motor vehicles and the like) in the main pool and...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.