Page 17 - Capital Allowances Recoupments Part 1 (CTA)
P. 17
REMEMBER:
• Second-hand = previously owned and used!
• Unused = previously owned, but not previously used!
• Moving cost → Write off over s 12C asset‟s remaining write-off period in
equal instalments. If 12C already written of in full, write 100% off in the
year in which it was incurred [s 12C(6)].
• An improvement [as in s 12C(1)(h)] is treated as if
it is a “new” asset that qualifies for s 12C.
No s 12C allowance if [s 12C(3)]:
• Asset is let
The only leases that would qualify is an operating lease as defined by
section 23A AND
where the lessee derives amount from his trade constituting “income”.
• Asset has been disposed of by TP in a previous yoa.
• Asset already qualified for the allowance under s 12E.
• Asset where ownership is retained by the seller ito par (a) of the
definition of „instalment credit agreement (see VATAct).
