CA26850 - PMA: Fixtures: Election procedure
CAA01/S200 - S201
An election under CAA01/S198 or S199 must be made by notice in
writing to the Inland Revenue.
It should contain the following information:
- the amount fixed by the election,
- the name of each person making the election,
- information sufficient to identify the fixture and the relevant land,
- particulars of the interest acquired by or the lease granted to the purchaser; and
- the tax district references of each of the persons making the election.
The election is irrevocable.
The time limit for making the election is two years after the
time when the interest is acquired by the buyer or the buyer is
granted the lease.
A copy of the election must be included with each party's
return for the first period affected by it. This will normally be
the period in which the disposal or acquisition takes place.
The amount apportioned to the fixture must be quantified when
the election is made.
There may be cases where because of circumstances arising
after the making of the election the maximum amount is reduced
below the figure specified in the election. If this happens the
election is deemed to have specified the reduced maximum amount.
Where an election is made by a partnership, the return that
the election must accompany is the partnership return.
The fixtures rules work on an asset-by-asset basis. In
practice, you may accept a degree of amalgamation of assets where
this will not distort the tax computation. Provided that there are
no specific factors which could give rise to distortion, you may
accept an election covering all the fixtures in a particular
property but
not for a portfolio of properties.
Where a body of Commissioners has to determine a question
relating to a Section 198 or Section 199 election:
- each of the persons who made the election is entitled to appear
and be heard by, or make written representations to, the
Commissioners;
- the Commissioners will determine the question separately from
any other question;
- their determination has effect as if it was the determination of an appeal to which each of the persons who made the election was a party.
