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HMRC internal manual

Capital Allowances Manual

From
HM Revenue & Customs
Updated
, see all updates

ABA: anti-avoidance: transfers treated as being at market value

Agricultural buildings allowance was phased out by FA2008.

A person gets

  • 75% of the allowance for the financial year beginning 1 April 2008 / tax year 2008/09
  • 50% of the allowance for the financial year beginning 1 April 2009 / tax year 2009/10
  • 25% of the allowance for the financial year beginning 1 April 2010 / tax year 2010/11

There is no ABA for the financial year beginning 1 April 2011 / tax year 2011/12 onwards.

CAA01/S567 - S568

Treat a transfer of the relevant interest as being at market value if it is a control transfer, a transfer other than by way of sale or a transaction to obtain a tax advantage.

A control transfer is a transfer where:

  • the buyer controls the seller
  • the seller controls the buyer
  • there is common control of the buyer and seller, or
  • the buyer and seller are connected.

A scheme to obtain a tax advantage is one where it appears that the sole or main benefit that might be expected to arise from the transfer of the relevant interest is:

  • the obtaining of a capital allowance or,
  • the obtaining of a greater capital allowance or,
  • the avoidance or reduction of a balancing charge.