314 Procedure on apportionment

Summary

For the purposes of capital allowances and charges under Part 9, provision is made in section 311 for the apportionment of a lump sum payment made in connection with the sale and purchase of a number of different assets. Section 314 is designed to deal with cases where different interests may conflict on a question of apportionment of purchase price or value between different assets, or on a question of the valuation of assets. From the point of view of the Revenue it is important to secure that the same basis of apportionment is adopted in connection with the income tax or corporation tax liability of both the vendor and of the purchaser. In any case where there is a dispute between 2 or more taxpayers involving apportionment of any sum, including the purchase price of any property sold, the apportionment is determined by the Appeal Commissioners.

Details

(1) Where for the purposes of capital allowances or charges under Part 9 any sum is to be apportioned (see section 311) and the apportionment affects the liability to tax of 2 or more persons, then, if there is any dispute as to the basis of apportionment, the inspector shall issue a determination in respect of the apportionment.

A person aggrieved by a determination made under this section may appeal the determination by notice in writing to the Appeal Commissioners. An appeal must be made within 30 days after the date of the notice of that determination. The Appeal Commissioners will hear and determine an appeal in the manner provided for in Part 40A.

(2) These rules also apply in relation to cases where under Part 9 it is necessary to determine the market price of any property.

Relevant Date: Finance Act 2021