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HMRC internal manual

Capital Allowances Manual

HM Revenue & Customs
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General: Combined sales: Apportionment: appeals

CAA01/S563 - S564

If there is an appeal and the apportionment of the sale price only affects your taxpayer’s liability, the case should be heard by the usual Commissioners in the normal way as an appeal against an assessment.

If the apportionment of the sale price affects the liability of two or more taxpayersbut only one body of Commissioners has jurisdiction, the apportionment should be determined by those Commissioners unless all the taxpayers agree that the SpecialCommissioners make the determination.

If the apportionment of the sale price affects the liability of two or more taxpayers and more than one body of General Commissioners would have jurisdiction under the usual rulesyou should ask each of the taxpayers to say if they agree to the Special Commissionersdealing with the matter. If one or more of the parties do not agree that the matter should be determined by the Special Commissioners you should submit the case, together with the file of each taxpayer, to CT&VAT (Technical). In your submission you should say in which Commissioners’ division the property is situated. You will be sent a Board’sdirection stating which of the General Commissioners having jurisdiction should hear thecase.

If the Commissioners hear an apportionment and it affects the liability of two or more taxpayers, it is essentially a dispute between the taxpayers. You, or if the taxpayers are dealt with in more than one District, both you and the other Inspector, should however attend the Commissioners hearing.

If the Commissioners consider an apportionment you should accept their decision because it will be a decision of fact.

CAA01/S562 & S563 are purely capital allowance provisions. They do not let Commissioners determine the value of assets such as goodwill, which do not qualify for capital allowances.

The provisions of Section 563 also apply to the determination of open market value for thepurposes of

  • the plant and machinery legislation CA23250;
  • disposal value for MEA;
  • the legislation about transfers treated as sales in CAA01/S573 CA11540;
  • the successions legislation in CAA01/S559 CA15000;
  • the legislation about connected person and control sales in CAA01/S568 & S569 CA13000; and
  • the legislation in CAA01/S561 CA15560 about transferring a trade to a company in another EC state.