Capital Allowances Act 2001 section 187B

Section 187A: supplementary provision

Section 187B provides supplementary rules supporting section 187A, covering the burden of proof on the current owner, the meaning of "relevant earlier time", and how disposal value statement rules operate in the context of fixture ownership changes.

• The current owner bears the burden of proving whether the fixed value requirement and the disposal value statement requirement apply and are satisfied, and must provide HMRC with supporting documents on request
• Where the fixed value requirement is met through a written statement or the disposal value requirement applies, the same procedural rules that govern elections under section 200 also apply to statements made under section 187A
• The "relevant earlier time" generally means any time before the current owner is treated as owning the fixture, but this look-back period is cut short where the plant was previously sold as a separate item (not as a fixture) between unconnected parties
• The restrictions imposed by section 187A on the current owner's qualifying expenditure do not affect any disposal value that the past owner is required to bring into account in respect of their own earlier capital allowances claim