Capital Allowances Act 2001 Schedule 3 paragraph 34

Purchaser of land giving consideration for fixture

Schedule 3 paragraph 34 modifies the rules in section 181 for claiming capital allowances on fixtures when a purchaser acquired their interest in the land before 24th July 1996.

• Section 181 normally allows a purchaser of land to be treated as the owner of a fixture for capital allowances purposes when they give consideration attributable to the fixture.
• For purchases before 24th July 1996, an additional condition is inserted: at the time of purchase, either no one must have previously claimed an allowance on the fixture, or if someone has, they must have brought the disposal value into account.
• This extra requirement prevents double allowances by ensuring that any previous claimant has properly accounted for the disposal of the fixture before a new owner can claim.
• This transitional rule only applies to interests in land acquired before 24th July 1996; purchases on or after that date follow the standard section 181 rules without this additional condition.