Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Readers' forum : Allowances unclaimed

20 September 2016
Issue: 4568 / Categories: Forum & Feedback

If capital allowances on a building were unclaimed, can the purchaser claim?

Company A arranged the construction of a commercial property in 2006 using a bank loan. That property was the company’s only asset and was leased to a trading company Company B which is associated to Company A by common ownership but not grouped with it.

The bank foreclosed the loan and so with the bank’s agreement Company B acquired the property from Company A at a much-reduced current market value. This left Company A insolvent because the balance of the loan was outstanding. A liquidator was duly appointed.

Company A had never claimed capital allowances on the fixtures within the building. And accounts and a corporation tax computation were not prepared for the final accounting period up to the date of Company A going into liquidation due to its financial difficulties. The company had been loss-making and realised a significant capital loss on the property...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon