Capital Allowances Act 2001 section 195A

Acquisition of ownership by assignee of energy services provider

Section 195A deals with what happens for capital allowances purposes when an energy services provider assigns their interest in a fixture to another party, and how the assignee steps into the shoes of the original provider.

• When an energy services provider assigns their interest in a fixture, the assignee is treated as the new owner of that fixture from the date of assignment
• The consideration paid by the assignee for the assignment is treated as expenditure incurred on the provision of the fixture, forming the basis for future capital allowances claims
• The assignee is treated as being an energy services provider in their own right, inheriting the same status as the original provider for capital allowances purposes
• This deemed energy services provider status means the assignee is subject to the same cessation and onward assignment rules that applied to the original provider