Capital Allowances Act 2001 section 201

Elections under sections 198 and 199: procedure

Section 201 sets out the procedural requirements for making joint elections under sections 198 and 199 to fix the value attributed to fixtures when a qualifying interest is sold or a lease is granted.

• The election must be notified to HMRC within two years of the purchaser acquiring the qualifying interest or the lessee being granted the lease, unless a tribunal application under the fixed value requirement is pending, in which case the election may be made at any time before the tribunal determines or the application is withdrawn.
• The elected amount must be quantified at the time the election is made, and the notice must include specified details: the agreed amount, the names and Unique Taxpayer References of each party, identification of the plant or machinery and the relevant land, and particulars of the interest or lease involved.
• When a person who joined in the election submits a tax return for the first period in which the election has a tax effect, a copy of the election notice must accompany that return; for partnerships, this means the partnership return.
• The normal statutory rules governing claims and elections for income tax (under the Taxes Management Act 1970) and corporation tax (under Schedule 18 to the Finance Act 1998) do not apply to these elections.