Q&As

What (if any) capital allowances elections can be entered into on the surrender of a lease to a landlord? Is there any way to transmit capital allowances to a landlord in this case?

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Published on LexisPSL on 12/08/2019

The following Tax Q&A provides comprehensive and up to date legal information covering:

  • What (if any) capital allowances elections can be entered into on the surrender of a lease to a landlord? Is there any way to transmit capital allowances to a landlord in this case?

Under section 198 of the Capital Allowances Act 2001 (CAA 2001), where an existing interest in land is sold, the buyer and seller may elect to fix the amount of consideration to be allocated to any fixtures on which the seller has claimed capital allowances.

There are various conditions that must be satisfied in order for the election to be valid. These conditions are set out in Practice Note: Section 198

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