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Where Taxpayers and Advisers Meet

Value for capital allowances

whysoserious
Posts:1
Joined:Thu Jan 27, 2022 1:34 pm
Value for capital allowances

Postby whysoserious » Thu Jan 27, 2022 1:38 pm

Stuck on a real humdinger

COmpany is migrating its tax residence from France to the UK and question is at what value do you use for capital allowances purposes. Is it the historic original cost or market value or book value? HMRC manuals seem to indicate that it's market value but not very concrete and would appreciate if someone can refer to the legislation or something concrete

Incredulum
Posts:2795
Joined:Thu Dec 03, 2009 5:35 pm

Re: Value for capital allowances

Postby Incredulum » Mon Apr 11, 2022 5:43 pm

Market value.

Historic value is irrelevant, and book value is made up by the directors. Why would it be anything other than market value. Pretty clear confirmation here:

https://www.gov.uk/hmrc-internal-manuals/company-taxation-manual/ctm34070


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