Capital Allowances Sample Clauses
The CAPITAL ALLOWANCES clause defines how tax relief on qualifying capital expenditures, such as equipment or machinery, is allocated between the parties to a contract. It typically specifies which party is entitled to claim these allowances and may outline the process for transferring entitlement if assets change hands during the contract term. This clause ensures clarity and prevents disputes by clearly assigning the right to claim tax benefits, thereby avoiding double claims or confusion over tax liabilities.
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Capital Allowances. All expenditure which the Company has incurred or may incur under any subsisting commitment on the provision of machinery, plant or buildings has qualified or will qualify (if not deductible as a trading expense for trade carried on by the Company) for writing- down allowances or industrial building allowances (as the case may be) under CAA and where appropriate notices have been given to the Inland Revenue under section 118, FA 1994.
Capital Allowances. 16.1. This condition 16 applies where the special conditions state that there are capital allowances available in respect of the lot.
16.2. The seller is promptly to supply to the buyer all information reasonably required by the buyer in connection with the buyer’s claim for capital allowances.
16.3. The value to be attributed to those items on which capital allowances may be claimed is set out in the special conditions.
16.4. The seller and buyer agree:
▇▇.▇.▇. ▇▇ make an election on completion under Section 198 of the Capital Allowances Act 2001 to give effect to this condition 16; and
▇▇.▇.▇. ▇▇ submit the value specified in the special conditions to HM Revenue and Customs for the purposes of their respective capital allowance computations.
Capital Allowances. 3.1 No balancing charge under the CAA 2001 (or any other legislation relating to capital allowances) would be made on the Company or the Subsidiary on the disposal of any pool of assets (that is, all those assets whose expenditure would be taken into account in computing whether a balancing charge would arise on a disposal of any other of those assets) or of any asset not in such a pool, on the assumption that the disposals are made for a consideration equal to the book value shown in or adopted for the purpose of the Accounts for the assets in the pool or (as the case may be) for the asset.
3.2 No event has occurred since the Accounts Date (otherwise than in the ordinary course of business) whereby any balancing charge may fall to be made against, or any disposal value may fall to be brought into account by the Company or the Subsidiary under the CAA 2001 (or any other legislation relating to any capital allowances).
3.3 Neither the Company nor the Subsidiary has made any claim for capital allowances in respect of any asset which is leased to or from or hired to or from the Company or the Subsidiary and no election affecting the Company or any Subsidiary has been made or agreed to be made under sections 177 or 183 of the CAA 2001 in respect of such assets.
3.4 Neither the Company nor the Subsidiary is a lessee under a lease to which the provisions of Chapter 17 of Part 2 of the CAA 2001 apply or could apply.
3.5 Neither the Company nor the Subsidiary is a party to any transactions to which the provisions of Schedule 12 to the Finance Act 1997 apply or could apply.
3.▇ ▇▇▇ther the Company nor the Subsidiary has made any election under section 83 of the CAA 2001 nor is it taken to have made such an election under section 89(4) of the CAA 2001.
3.7 Neither the Company nor the Subsidiary has incurred any long life asset expenditure within the meaning of section 90 of the CAA 2001.
3.8 None of the assets of the Company or the Subsidiary expenditure on which has qualified for a capital allowance under Part 3 of the CAA 2001 has at any time been used otherwise than as an industrial building or structure.
Capital Allowances. If the special conditions state that there are capital allowances available in respect of the lot, the Seller must promptly supply to the Buyer all information reasonably required by the Buyer in connection with the Buyer’s claim for capital allowances. The Seller and the Buyer agree to make an election on completion under s198 of the Capital Allowances Act 2001 to give effect to the capital allowance and to submit the value specified in the special conditions to HMRC for the purposes of their respective capital allowance computations.
Capital Allowances. In the last 6 years the Company has not claimed first-year tax credits within the meaning of Schedule A1 of CAA 2001, business renovation allowances under Part 3A of CAA 2001, flat conversion allowances under Part 4A of CAA 2001 or owned at the Accounts date any asset which, if disposed of at the date of this Agreement for consideration equal to its net book value as included in the Accounts, would give rise to a balancing charge or clawback of allowances in excess of £10,000.
Capital Allowances. 4.1 If any pool of assets (that is, all those assets whose expenditure would be taken into account in computing whether a balancing charge would arise on disposal of any other of these assets) or any asset not in such a pool, of the Company or any Subsidiary were disposed of at Completion for its book value as shown in, or adopted for the purpose of, the Accounts, or for the value of consideration actually given for it on its acquisition (if such asset were acquired since the Accounts Date), no balancing charge under Capital ▇▇▇▇▇▇▇▇▇ ▇▇▇ ▇▇▇▇ (CAA 2001) (or any other legislation relating to capital allowances) or similar clawback of relief in jurisdictions outside the UK would be made on the Company or that Subsidiary.
4.2 No event has occurred since the Accounts Date (otherwise than in the ordinary course of business) whereby any balancing charge may fall to be made against, or any disposal value may fall to be brought into account, by the Company or any Subsidiary under CAA 2001 (or any other legislation relating to capital allowances) or similar legislation relating to relief for similar capital expenditure in jurisdictions outside the UK.
4.3 The Disclosure Letter contains details of:
(a) all expenditure incurred since the Accounts Date in respect of which allowances can be claimed under Parts 2 and 3 of CAA 2001;
(b) all capital allowances to which the Company is entitled under Chapter 14 of Part 2 of CAA 2001;
(c) any claim for first-year tax credits within the meaning of Schedule 1A of CAA 2001 or for business renovation allowances under Part 3A of CAA 2001; and
(d) all expenditure incurred on the provision of or replacement of integral features within the meaning of section 33A of CAA 2001.
4.4 The Company has not and no Subsidiary has made any claim for capital allowances in respect of any asset which is leased to or from or hired to or from the Company or a Subsidiary and no election affecting the Company or any Subsidiary has been made or agreed to be made under Sections 177 or 183 CAA 2001 in respect of any such assets.
Capital Allowances. (a) The Seller undertakes to procure that each relevant Business Seller (at the Purchaser’s cost):
(i) reasonably cooperates with the relevant Business Purchasers; and
(ii) provides such information and assistance as the relevant Business Purchasers may reasonably request, in each case to assist the relevant Business Purchasers in claiming capital allowances in respect of the assets comprising the Group Businesses and in giving effect to the CAA Elections (as defined in Clause 2.11(b) below).
(b) The Seller and the Purchaser agree that, for the purposes of the Capital ▇▇▇▇▇▇▇▇▇▇ ▇▇▇ ▇▇▇▇, the parts of the Purchase Price attributable (respectively) to:
(i) fixtures in the Properties situated in the United Kingdom expenditure on which is not "special rate expenditure" within section 104A of the Capital Allowances Act 2001 (Non-Integral Fixtures) shall be fair market value; and
(ii) fixtures in the Properties situated in the United Kingdom expenditure on which is "special rate expenditure" within section 104A of the Capital Allowances Act 2001 (Special Rate Fixtures) shall be fair market value in each case subject to any maximum amount determined under applicable law, and with the fair market values of the assets in question being determined in accordance with the Appraisal (as defined in Schedule 14) (the Agreed Apportionments).
(c) Each of the relevant Business Sellers and each of the relevant Business Purchasers shall, on Completion, enter into elections under section 198 of the Capital Allowances ▇▇▇ ▇▇▇▇, such elections specifying:
(i) the aggregate amount fixed in respect of Non-Integral Fixtures; and
(ii) the aggregate amount fixed in respect of Special Rate Fixtures, in each case in relation to the Properties situated in the United Kingdom, with such aggregate amounts corresponding to the respective Agreed Apportionments and apportioned between each relevant Business Purchaser and each relevant Business Seller in the same relevant proportions as the part of the Purchase Price attributable to the Group Businesses is allocated in accordance with the Purchase Price Allocation Agreement (the "CAA Elections") (with each party to retain a duly signed version of each relevant election at Completion).
(d) The Seller shall procure that each of the relevant Business Sellers shall, and the Purchaser shall procure that each of the relevant Business Purchasers shall submit their respective CAA Elections to HM Revenue & Customs within the time limit prescribed by l...
Capital Allowances. (a) No balancing charge in respect of any capital allowances claimed or given would have arisen if all the assets of the Company had been realised on the Accounts Date for a consideration equal to the amount of the book value thereof as shown or included in the Accounts.
(b) The Company has not since the Accounts Date become liable for any balancing charge.
Capital Allowances. 8.5.1 The book value of each of the assets of the Company in or adopted for the purposes of the Accounts on which capital allowances have been calculated separately does not exceed the written down value of such asset for the purposes of the CAA and the aggregate book value of plant and machinery for which capital allowances have been claimed under Part II of that Act does not exceed the written down value of the qualifying expenditure under the CAA.
8.5.2 The Company has not been a party to or involved in any transaction whereby a balancing allowance would be denied or reduced by virtue of section 5 CAA.
8.5.3 No allowances have been claimed by the Company which are liable to be reduced or withdrawn by virtue of sections 1(6), 42 or 47 CAA.
8.5.4 No capital expenditure has been incurred since the Balance Sheet Date which is subject to the provisions of section 75 CAA.
Capital Allowances. 11.1 No balancing charge in respect of any capital allowances claimed or given would arise if any asset of the Company were to be realised for a consideration equal to the amount of the book value of such asset as shown or included in the Accounts (or, in the case of any asset acquired since the Accounts Date, for a consideration equal to the consideration given for the acquisition).
11.2 So far as the Warrantors are aware, all necessary conditions for the availability of all capital allowances claimed by the Company (or, where computations are made for capital allowances purposes for pools of assets, all the assets in that pool) have at all material times been satisfied and remain satisfied.
11.3 The Disclosure Letter contains full details of all expenditure incurred since the Accounts Date or to be incurred under any subsisting commitment in respect of which allowances can be claimed under part 2 (plant and machinery allowances) and part 3 (industrial building allowances) CAA 2001.