Market leading insight for tax experts
View online issue

Section 198 elections for plant fixtures

Speed read

SPEED READ When plant is sold a disposal value must be brought into account. This may be calculated using a ‘just and reasonable apportionment’, or for fixtures, a Capital Allowances Act 2001 s 198 election. Sellers should generally seek to agree as low an election amount as possible (eg, tax written-down value or say £1). However, buyers should usually avoid elections at less than the full amount of the seller’s claim. There are various technical conditions necessary to make an election, but the greatest practical difficulty normally arises from providing information sufficient to identify the plant, and quantifying the value of fixtures.

If you or your firm subscribes to, please click the login box below:

If you do not subscribe but are a registered user, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this article in full.