Part 2

Plant and machinery allowances
Chapter 14

Fixtures

Election to fix apportionment

Election to apportion sale price on sale of qualifying interest
198
1
This section applies if the disposal value of a fixture is required to be brought into account in accordance with item 1 or 9 of the Table in section 196 (sale of qualifying interest at not less than market value, etc.).
2
The seller and the purchaser may jointly, by an election, fix the amount that is to be treated—
a
for the purposes of item 1 or (as the case may be) 9 of the Table, and
b
for the other purposes of this Part,
as the part of the sale price that is expenditure incurred by the purchaser on the provision of the fixture.
3
The amount fixed by the election must not exceed—
a
the amount of the capital expenditure which was treated as incurred by the seller on the provision of the fixture or of the plant or machinery which became the fixture, or
b
the actual sale price.
4
If an election fixes the amount to be treated as the part of the sale price—
a
the remaining amount (if any) of the sale price is to be treated for the purposes of this Act as expenditure attributable to the acquisition of the property which is not the fixture but is acquired for that amount, and
b
if there is no remaining amount, the expenditure so attributable is to be treated for the purposes of this Act as nil.
5
This section is subject to—
a
sections 186, 186A and 187 (fixtures on which industrial buildings allowance, business premises renovation allowance or research and development allowance has been made),
b
section 197 (disposal values in avoidance cases), and
c
sections 200 and 201 (further provisions about elections).
Pt. 2 modified (24.2.2003) by Proceeds of Crime Act 2002 (c. 29), s. 458(1), Sch. 10 para. 12 (with Sch. 10 para. 17(1)); S.I. 2003/120, art. 2, Sch. (with arts. 3 4) (as amended (20.2.2003) by S.I. 2003/333, art. 14)
S. 45H(2) modified (with effect in accordance with s. 167 of the amending Act) by Finance Act 2003 (c. 14) , Sch. 30 para. 7
Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 4 para. 4 ; S.I. 2004/2575 , art. 2(1) , Sch. 1
Pt. 2 modified (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 9(2), 21(2) (with s. 38(2)); S.I. 2004/2575, art. 2(1) , Sch. 1
Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 10, 22 (with s. 38(2) ); S.I. 2004/2575 , art. 2(1) , Sch. 1
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 19
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 35
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 paras. 36, 37
Pt. 2 modified (21.7.2009) by Finance Act 2009 (c. 10), s. 24
Words in s. 198(1) inserted (with effect in accordance with Sch. 10 para. 11 of the amending Act) by Finance Act 2012 (c. 14), Sch. 10 para. 3(a)
Words in s. 198(2)(a) inserted (with effect in accordance with Sch. 10 para. 11 of the amending Act) by Finance Act 2012 (c. 14), Sch. 10 para. 3(b)
S. 198(5)(a) substituted (with effect in accordance with Sch. 10 para. 12 of the amending Act) by Finance Act 2012 (c. 14), Sch. 10 para. 9
Pt. 2 modified (17.7.2013) by Finance Act 2013 (c. 29), s. 73(7)-(11) (with s. 73(6))
Pt. 2 modified (10.6.2021) by Finance Act 2021 (c. 26), s. 9(1)(a)