IFM08340 | Co-ownership Authorised Contractual Schemes (CoACS): Capital allowances: effect of election for purchasers

If a person purchases property from a Co-ownership Authorised Contractual Scheme (CoACS) and the operator has elected into the simplified basis, the purchaser must obtain a written statement from the operator of the assumed TWDV disposal value of the plant and machinery fixtures within 2 years of the purchase of the property. The purchaser’s qualifying expenditure is limited to this TWDV disposal value.

If the purchaser fails to obtain the written statement within the 2 year time limit, the purchaser’s qualifying expenditure is treated as nil.