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Table of Contents
24A.1 Introduction
24A.1.1 The Problem
24A.1.2 History
24A.1.3 Accelerated Allowances
24A.1.4 Types of Allowance
24A.1.4.1 Example
24A.1.5. Incurring Capital Expenditure
24A.1.5.1 Not Finance
24A.1.5.2 When Incurred?
24A.1.5.3 A Special Case—Non-Recourse Finance
24A.1.6 Giving Effect to Allowances
24A.1.6.1 Taxing the Qualifying Activity: Schedule A Business, Trade etc
24A.1.6.2 Other Allowances Given by Repayment
24A.1.7 Amounts: Price or Market Value?
24A.1.7.1 Sales between Connected Persons
24A.1.7.2 Apportionment of Proceeds
24A.1.7.3 Discontinuance and Deferrals: Succession to Trades
24A.1.8 Choice of Allowances
24A.1.9 Capital Allowance and Revenue Expense Compared
24A.2 Plant and Machinery
24A.2.1 Elements
24A.2.1.1 Outline
24A.2.1.1.1 Qualifying Activities and Apportionment
24A.2.1.2 Successions
24A.2.1.3 Unusual Acquisitions: Change of Use and Gifts—Market Value
24A.2.1.4 Similar Reliefs
24A.2.1.5 Partners
24A.2.1.6 Qualifying Activities: General
24A.2.1.7 Qualifying Activities: Employment
24A.2.1.8 Claims and Backdating: Repeated Provision
24A.2.2 ‘Belong to’/‘Owned by’
24A.2.2.1 Reversing Costain: The Fixtures Rules
24A.2.3 What is Plant and Machinery?
24A.2.3.1 General
24A.2.3.2 Computer Software
24A.2.4 Plant or Setting
24A.2.4.1 Statutory Prescription of Settings
24A.2.4.2 Plant or Setting: Case-Law Principles
24A.2.4.3 Defining the Unit
24A.2.4.4 Defining Setting
24A.2.4.5 Case-Law Survey
24A.2.5 First Year Allowances
24A.2.5.1 General
24A.2.5.1.1 Small and Medium-Sized Company
24A.2.5.2 Small Enterprises and Temporary ICT Allowance
24A.2.5.3 Energy Saving: Any Size
24A.2.6 Writing down Allowances, Balances and the Pool
24A.2.6.1 Pooling
24A.2.6.2 Examples
24A.2.7 Disposal Value
24A.2.7.1 Amounts
24A.2.7.1.1 Market Value
24A.2.7.1.2 End of Asset
24A.2.7.1.3 End of Trade
24A.2.8 Short-Life Assets—the Non-Pooling Option
24A.2.9 Long Life Assets
24A.2.10 Motor Vehicles
24A.2.10.1 Full Allowances
24A.2.10.2 Restricted Allowances on ‘Expensive’ Motor Cars
24A.2.11 Hire Purchase
24A.2.12 Leasing—Special Rules
24A.2.12.1 Trade of Leasing Qualifies
24A.2.12.2 Not in Course of Trade-Separate Qualifying Activity
24A.2.12.3 Overseas Leasing
24A.2.12.4 Lessee’s Expenditure
24A.2 13 Ships
24A.2.14 Master Copies of Films
24A.2.15 Anti-Avoidance: Relevant Transactions, Finance Leases and Leasebacks
24A.3 Industrial Buildings
24A.3.1 General
24A.3.1.1 Structure of Allowances
24A.3.2 Definition of Industrial Building
24A.3.2.1 Qualifying Trades
24A.3.2.2 Storage
24A.3.2.2.1 Others
24A.3.2.3 Exclusions
24A.3.2.4 Extensions Beyond Qualifying Trades
24A.3.2.5 Parts of Building
24A.3.2.6 Example
24A.3.3 The Relevant Interest—Who can Claim the Allowances?
24A.3.3.1 Election for Long Lease
24A.3.3.2 No Election
24A.3.3.3 Initial Allowance for Lessee
24A.3.3.4 Lease Ends: Allowances Continue
24A.3.3.5 Initial Allowance: Licence as Good as Lease
24A.3.4 Initial Allowances: Enterprise Zones
24A.3.5 Writing down Allowance
24A.3.6 Balancing Adjustments: Allowance and Charges
24A.3.6.1 The Residue of Qualifying Expenditure
24A.3.6.2 Example 1
24A.3.6.3 Example 2
24A.3.6.4 The Purchaser
24A.3.6.5 Minor Matters
24A.3.6.6 Building not Land: Artificial Arrangements
24A.3.7 Other Buildings
24A.3.7.1 Qualifying Hotel Buildings and Extensions
24A.3.7.2 Dwelling House—Assured Tenancies
24A.4 Agricultural Land
24A.4A Conversions of Parts of Business Premises into Residential Flats
24A.5 Mining
24A.6 Research and Development Allowances
24A.7 Know How
24A.8 Patents
24A.9 Dredging
24A.10 Commentary: Policy and History
24A.10.1 Policy
24A.10.2 Grander Theories
24A.10.3 The UK System Scope and Rates
24A.10.4 Further Problems
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