Tax

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CLAIMING YOUR CAPITAL ALLOWANCES

Owners and Purchasers of Commercial Property - Are you absolutely sure you have claimed all of your Allowable Capital Allowances?

The rules regarding the availability of capital allowances on the sale of commercial property changed significantly on 1 April 2014. 

Under the new rules a purchaser of a second hand property is only entitled to claim allowances on second hand fixtures within the building, if the fixtures have been properly identified by the previous owner and recognised in their capital allowance computation. 

If a previous owner has failed to make a claim for capital allowances, which is not an uncommon occurrence, the entitlement to those allowances will be lost for all future purchasers of the building.

However, significant opportunities for tax savings remain:

  • First Purchasers of Second Hand Properties. Planning can be implemented to ensure that the first purchaser of a second hand property is entitled to the maximum amount of capital allowances, but the planning needs to be implemented before the purchase.  
  • Owners of Existing Commercial Properties. If you are an existing property owner, in particular if you have made improvements during your ownership of the property, you may be entitled to additional capital allowances. These can be claimed without needing to sell the property.

Further Information

If you have any questions regarding the above or require any assistance, please do not hesitate to contact Debbie Turner  on +44 (0)1372-461411.

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Alternatively, to speak with us directly call us on +44 (0)1372 461411. Lines are open from Monday to Friday 9am to 6pm (excluding UK bank holidays).

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Dixcart Legal is the trading name of Dixcart Legal Limited. Registered in England and Wales with Company Number: 08415391. Registered Office: Hillbrow House, Hillbrow Road, Esher, Surrey, KT10 9NW. VAT Registration Number: GB 720 6860 44. Dixcart Legal Limited is authorised and regulated by the Solicitors Regulation Authority (No. 612167).
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