Capital Allowances: Latest Position
Page 37
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A STATEMENT on the latest position
relating to capital allowances on the purchase price of transport units on denationalization is being made by the Road Haulage Association. The matter was the subject of two test cases before the Special Commissioners of Inland Revenue in November, 1959.
The R.H.A. states that it understands the authorities are no longer contesting the inclusion for such allowances of any sum deemed to be for a special A licence where vehicle and licence were acquired together under the 1953 Transport Act. Nor do the authorities, the R.H.A, understands, contest similar sums where special A licences were transferred to other vehicles, or licence and vehicle were assigned to another purchaser.
One overriding factor to be taken into account is that the transaction resulted in the haulier taking physical delivery of the vehicle and operating it in his business for the purposes of his trade.
Consideration will be given to any special cases.