CAA 2001 s 198 elections have been around for decades, but they are still often misunderstood, under-utilised and completed incorrectly. The purpose of a s 198 election is relatively simple, but hugely important: the lack of a s 198 election in certain circumstances could mean no capital allowances are available to a buyer on even the largest of commercial property transactions, and equally could result in a large disposal value to be recognised by the seller, resulting in unintended balancing charges and a clawback of the capital allowances claimed.
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CAA 2001 s 198 elections have been around for decades, but they are still often misunderstood, under-utilised and completed incorrectly. The purpose of a s 198 election is relatively simple, but hugely important: the lack of a s 198 election in certain circumstances could mean no capital allowances are available to a buyer on even the largest of commercial property transactions, and equally could result in a large disposal value to be recognised by the seller, resulting in unintended balancing charges and a clawback of the capital allowances claimed.
If you are not a subscriber, subscribe now to read this content.
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