Asset valuation for tax: Capital allowances, transfer and rating taxation
Understand the tax implications relating to capital assets
Obtain specialist tax valuations that withstand the closest scrutiny and reflect current statute, regulations and valuation guidelines.
Calculate capital allowances for acquired capital assets
Understand the calculations for obtaining capital allowances in relation to capital assets.
Then obtain the evidence you need to support your claim with relevant tax authorities.
Tax allowances are:
- Based upon the cost of the asset, subject to certain qualifications
- Differ in year one and subsequent years and also by asset category
Hickman Shearer interprets valuation guidelines provided by statute and regulation to calculate values and arrive at taxable capital allowances.
Obtain asset valuations to calculate taxation arising due to the transfer of assets
There are many occasions where taxation is due, arising from the sale or transfer of capital assets either in the UK or cross-border to either UK or other tax jurisdictions.
For example, transfer pricing legislation concerns itself with the prices charged between connected parties as, in such circumstances, the price charged may not necessarily be that which would have been charged if the parties had not been connected.
Tax rules generally require that the transferor of used equipment receive an arm’s-length consideration for the equipment. This is generally considered to be the fair market value of the equipment at the time of transfer.
Determine if capital assets are rateable and if so, the rateable value
In the UK certain plant and machinery assets are rateable, the criteria is provided by the Valuation Office and case law. These provisions prescribe the rateable classification and the basis of valuation.
The valuations should reflect the assets’ rental value as at 1 April 2017 but as comparable rental values rarely exist for plant and machinery assets, valuations are performed on a discounted replacement cost basis.
Obtain professional asset valuations in accordance with UK HMRC guidelines and other jurisdictions.
Your quality guarantee
Understanding capital asset valuation issues requires insight, expertise and experience.
Hickman Shearer is a RICS regulated firm employing high calibre experienced RICS qualified professionals, each of whom has a successful track record of providing asset owners and their advisors with:
- Robust and relevant asset valuations
- Supporting detailed market analysis
- Technical guidance and impartial, authoritative advice
The standards Hickman Shearer’s team works to are both demanded and recognised around the world, ensuring a trusted universal approach and a set of consistent skills globally.