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 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 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 and 187 (fixtures on which industrial buildings 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).