CA12500 - General: Combined sales: Apportionment: appeals

CAA01/S563 - S564

If there is an appeal and the apportionment of the sale price only affects your taxpayer’s liability, the case should be heard by the First Tier Tribunal in the normal way as an appeal against an assessment.

If the apportionment of the sale price affects the liability of two or more taxpayers, each of those taxpayers is entitled to be a party to the proceedings.

An apportionment case affecting the liability of two or more taxpayers is essentially a dispute between the taxpayers but HMRC will usually be invited to participate and will consider on a case by case basis whether to do so.

CAA01/S562 & S563 are purely capital allowance provisions. They do not let the First Tier Tribunal determine the value of assets such as goodwill, which do not qualify for capital allowances.

The provisions of Section 563 also apply to the determination of open market value for the purposes of

• the plant and machinery legislation CA23250;
• disposal value for MEA;
• the legislation about transfers treated as sales in CAA01/S573 CA11540;
• the successions legislation in CAA01/S559 CA15000;
• the legislation about connected person and control sales in CAA01/S568 & S569 CA13000; and
• the legislation in CAA01/S561 CA15560 about transferring a trade to a company in another EU state.

See CA26479 regarding Tribunal applications to satisfy the fixed value rule for plant and machinery fixtures (CAA01/S187A(7)(a)).