Commentary

B3.108 Capital allowances―controlled sales and transfers treated as sales

Business tax
Business tax | Commentary

B3.108 Capital allowances―controlled sales and transfers treated as sales

Business tax | Commentary

B3.108 Capital allowances―controlled sales and transfers treated as sales

Controlled sales

The provisions described below apply to mineral extraction allowances (see Division B3.4) and research and development allowances (see Division B3.7) and they applied (and may still apply on a balancing event in certain cases) to the following codes of allowances which have now been abolished1:

  1.  

    (a)     industrial building allowances (but now relevant only in a very small number of cases in respect of enterprise zone buildings), see B3.281)

  2.  

    (b)     business premises renovation allowances (see Division B3.11)

  3.  

    (c)     flat conversion allowances, see Division B3.10)

  4.  

    (d)     assured tenancy allowances, see Division B3.9)

Somewhat similar provisions applying to plant and machinery allowances are described in B3.365.

The provisions apply where there is a controlled sale. There is a 'controlled sale' where:

  1.  

    (i)     the buyer is a body of persons over whom the seller has control; or

  2.  

    (ii)     the seller is a body of persons

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