Capital Allowances Act 2001 Schedule 3 paragraph 37

Incoming lessee where lessor not entitled to allowances

Schedule 3 paragraph 37 modifies the rules in section 184 for an incoming lessee claiming fixture allowances where the lease was granted before 24th July 1996 and the lessor was not entitled to allowances.

• Section 184 normally allows an incoming lessee to claim capital allowances on fixtures when the lessor was not entitled to allowances
• For leases granted before 24th July 1996, an additional condition applies before the lessee can claim
• The extra condition requires that, at the time the lease was granted, no person had previously become entitled to a capital allowance for expenditure on providing the fixture
• If anyone had already claimed allowances on the fixture before the lease was granted, the incoming lessee cannot use section 184 to claim