In a recent decision, the Tax Appeal Tribunal (“Tribunal”) held that no capital allowance claw-back (balancing charge) should be computed on the disposal proceed relating to intangible assets on which no capital allowance had been previously claimed.
The Tribunal also held that Petroleum Investment Allowance (“PIA”) should not be considered as part of allowances in computing the ‘residue’ for balancing charge. However, any applicable balancing charge is liable to education tax.
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