Capital allowances ― groups and connected persons

Produced by Tolley in association with Martin Wilson and Steven Bone
Owner-Managed Businesses
Guidance

Capital allowances ― groups and connected persons

Produced by Tolley in association with Martin Wilson and Steven Bone
Owner-Managed Businesses
Guidance
imgtext

Many provisions relating to capital allowances are disapplied or varied where the parties to a transaction are connected.

Definition of connected persons

Individuals

An individual is connected with a person if that person is:

  1. the individual’s spouse / civil partner

  2. a relative

  3. the spouse / civil partner of a relative of the individual or of the individual’s spouse / civil partner

‘Relative’ means a brother, sister, ancestor or lineal descendant. ‘Lineal descendant’ will include any descendant of the spouse by a previous marriage though not a later marriage.

Settlements

A trustee of a settlement is connected with:

  1. any individual who is a settlor in relation to that settlement

  2. any person who is connected with that settlor

  3. a body corporate which is deemed to be connected with that settlement

A body corporate is deemed to be connected with a settlement in any year of assessment if at any time in that year:

  1. it is a close company (or only

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Martin Wilson
Martin Wilson


Martin Wilson, specialised in capital allowances for 25 years before retirement. He is the author of numerous published works on the subject, including Bloomsbury's Capital Allowances: Transactions & Planning, and the capital allowances content of LexisPSL, Tolley's Tax Guidance, Tolley's Tax Planning and Simon's Tax Planning.

Steven Bone
Steven Bone linkedinicon twittericon

Director at Gateley Capitus


Steven is a tax-qualified Chartered Surveyor who has specialised in tax incentives, including capital allowances and land remediation relief for over 20 years. Previously he held senior specialist positions in 'Big 4' and national mid-tier accountancy firms. Capital allowances underpin income tax and corporation tax calculations by giving tax relief for money spent to buy, build or alter commercial property.Steven works with owner-occupiers, investors and their advisers to provide capital allowances opinions, transaction support and specialist valuations for all types of property.  This includes resolving HM Revenue capital allowances enquiries and giving expert evidence to tribunals and courts.Steven has contributed to many articles and books, including: Bloomsbury Professional's Capital Allowances, Tolley's Tax Planning, RICS's official Guidance Note for surveyors on Capital Allowances and Land Remediation Relief, and Practical Law Company's Practice Note on Commercial Property Standard Enquiry 32 dealing with capital allowances.

Powered by Tolley+

Popular Articles

Exporting goods ― proof of export

Exporting goods ― proof of exportIn addition to the requirements laid down in the Exporting goods ― overview guidance note, businesses intending to zero-rate exported goods must hold satisfactory evidence that the goods have been delivered to a destination outside of the UK. If satisfactory evidence

15 Dec 2020 14:02 | Produced by Tolley Read more Read more

Payments to trust beneficiaries

Payments to trust beneficiariesThis guidance note considers the trustees powers to make payments and whether the payment made is income or capital.This guidance note is designed to give outline and background for accountants and tax advisers who deal with clients establishing trusts. It is not

14 Jul 2020 12:52 | Produced by Tolley Read more Read more

Parking provision and expenses

Parking provision and expensesCar parking facilities at or near to the employee’s workplaceThere is an exemption from tax and NIC where an employer provides parking, or pays for or reimburses an employee for the costs associated with car parking at or near the place of work; there are no reporting

14 Jul 2020 11:09 | Produced by Tolley Read more Read more