The above Brief seeks comments on draft guidance on new rules for Plant and Machinery Allowances in respect of qualifying expenditure on second-hand fixtures. Comments on the draft guidance are requested by 15 May 2013.

By way of reminder, legislation was introduced in the Finance Act 2012 to make the availability of capital allowances to a purchaser of second-hand fixtures conditional on the pooling of relevant expenditure prior to a transfer, and on the seller and purchaser formally agreeing a value for fixtures within two years of a transfer, or on formal proceedings to agree the value being commenced within that time.

This Brief sets out details of the draft guidance on this new legislation which can be complex. The proposed text of this guidance is available on the HMRC website.