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HMRC internal manual

Capital Allowances Manual

PMA: Fixtures: Changes in ownership: Introduction and commencement

CAA01/S187A-187B

As a general rule, CAA01/S187A - S187B, introduced by Finance Act 2012, make the availability of capital allowances to a purchaser of second-hand fixtures conditional on the pooling of relevant expenditure prior to a transfer, and on the seller and purchaser formally agreeing a value for fixtures within two years of a transfer, or on formal proceedings to agree the value being commenced within that time.

These sections also allow a purchaser of second-hand fixtures to claim capital allowances in certain situations where there is no formal agreement or formal proceedings.

Here, ‘purchaser’ means the person who has acquired an interest in fixtures, whether by purchase of an interest in those fixtures or otherwise and ‘seller’ means the person who has transferred an interest in fixtures, whether by sale of an interest in those fixtures or otherwise.

Commencement

In general these rules apply where expenditure is incurred on the transfer of interests in fixtures (by sale or otherwise) on or after 1 April 2012 for corporation tax (6 April 2012 for income tax). However there is an exception as regards the pooling requirement which is explained in CA26476.