Readers’ forum: Capital allowances

My client is the owner of trading premises which he has owned in his personal capacity since 1994. The only tenant is his wholly-owned trading company Tradeco which pays a rent to my client for the use of the premises and it has an exclusive right of occupation of the premises under a licence.

Over the years Tradeco has incurred the expense of buying and installing fixtures into the property for the purpose of its own specific trade.

The situation now is that my client has received a good offer for the trading premises and he is minded to sell them and then acquire new premises which he will continue to own in his personal name and then let to Tradeco.

My question relates to the fixtures installed in the building which will now pass over to the new owner of the building. The person with...