Taxes Consolidation Act 1997 section 669E

Application of Chapter 4 of Part 9

Section 669E (now repealed) applied the general capital allowance provisions of Part 9 Chapter 4 to milk quota capital allowances, including the option for connected parties to transfer quota at tax written down value rather than open market value.

• The general capital allowance rules in Part 9 Chapter 4 applied to milk quota allowances as if the milk quota chapter were part of that Part.
• Where a milk quota was transferred between companies or partnerships under common control, the parties could jointly elect to use the asset's tax written down value instead of open market value, avoiding a balancing charge on the seller.
• If this election was made, the buyer wrote off a reduced figure over the remaining life of the asset, but any later sale above tax written down value triggered a balancing charge that took account of allowances already claimed by the seller.
• The election was generally unavailable where one party was non-resident, unless the non-resident company traded in the State through a branch or agency.