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Dear Sir,
Could you please confirm to me that I understood the following correctly?
The opening year relief is only applicable to sole traders (possibility to carry losses from the first 4 years of trade back 3 years). It however does not apply to corporations, where the only relief is to carry back 12 months as for all ongoing trades.
(Excluding relief on cessation of trade)Many thanks again for your lectures and availability to answer our questions, I wouldn’t be able to study without it!
AnneSorry to bother again but I have a question on another topic that came up in my practice questions.
“A company purchased a secondhand freehold office building for £400k. This figure included £30k for a ventilation system and £42 for a lift.”
I do not understand why only £72k worth of equipment were booked in the capital allowance calculation in the answers.
Can we not claim capital allowances on freeholds? Or is it because it is an “office building” and as such does not qualify as “plant (or machinery)”?
But if this is the latter, it would mean that we cannot claim capital allowances on the freehold itself but we can on the integral features of the building, no matter its use. Am I correct?Thanks a lot for the clarification,
Anne
We cannot indeed claim capital allowances on land and buildings ONLY on plant and machinery, but we are able to treat integral features of a building as plant and machinery and therefore claim CA’s on such expenditure.
In respect of losses it is essential that we do not mix up incorporated trades chargeable to CT and unincorporated trades chargeable to IT
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