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Posted Mon, 13 Mar 2023 16:48:34 GMT by Emily
We have acquired a company and would like to transfer the assets from the acquired business to another of our group companies. For accounting purposes, this is being done at market value. The trade isn't being transferred, this is just an asset transfer (plant and equipment). The assets will then be leased to group companies to be used in their trade. I understand for capital gains that this would be a tax neutral transfer. What is the treatment for capital allowance purposes? Do they transfer at TWDV? Do I have to make an election for this?
Posted Tue, 21 Mar 2023 08:20:30 GMT by HMRC Admin 20
Hi Emily Welch,

I am sorry, HMRC cannot provide accounting advice. However, you can refer to the Capital Allowance Manual at the following link:
Capital Allowances Manual.

Thank you.

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