The apportionments legislation CA12100 applies to the exchange of property and the surrender of a leasehold interest for valuable consideration as well as to sale proceeds.
Apply the apportionments legislation to the purchase price of
property in the same way as you apply it to sale proceeds. You
should also apply it to insurance, salvage and compensation monies.
Expenditure incurred on the acquisition of land, or the
acquisition of a mineral asset is treated as the purchase price of
property. This means that the apportionments legislation applies to
it.
A company may agree to buy assets and then satisfy the
purchase price by issuing shares instead of offering cash. If this
happens you should accept that the company has incurred capital
expenditure and that the purchase price is the value of the shares
issued.
If assets are sold together with rental agreements and the
sale price is not more than the cost of the assets you should
accept that the whole of the sale price relates to the assets. If
the sale price is more than the cost of the assets you should
obtain as much information as possible, including a copy of the
sale agreement, and submit the case to CT&VAT (Technical).
