FOR SOLICITORS
Capital allowances support for your commercial property transactions
Capital allowances can become relevant when commercial property changes hands, particularly where the fixtures position, previous claims or transaction history is unclear.
We work alongside solicitors to establish the position and provide specialist support when it’s needed.
THE TRANSACTION CHECK
Four questions worth asking.
These simple questions can help identify when capital allowances may need to be considered as part of a commercial property transaction.
1
Is this a commercial property transaction?
Capital allowances can be relevant to fixtures and integral features within many commercial buildings.
2
When did the vendor acquire the property?
The vendor’s acquisition history can be important when establishing the fixtures position and what information may be required.
3
Have capital allowances already been considered?
Check whether previous claims, pooling or a Section 198 election may exist.
4
Is the position clear before completion?
If it isn’t, this is a good point to involve a capital allowances specialist.
SECTION 198 & FIXTURES
The property’s history matters
When a commercial property changes hands, the capital allowances position for fixtures can depend on the property’s history, previous claims and how qualifying expenditure has been dealt with.
The relevant requirements have changed over time, which is why establishing the position during the transaction can be important.
BEFORE 2012
Earlier fixtures rules apply.
Historic ownership and previous claims may still need to be established.
APRIL 2012 TO APRIL 2014
Fixed value requirement.
For relevant transfers, the fixtures value needs to be fixed. A joint Section 198 election is a common route.
FROM APRIL 2014
Pooling requirement also applies.
For relevant transfers, the previous owner’s treatment of qualifying expenditure becomes particularly important.
WHY THIS MATTERS DURING A TRANSACTION
Establishing the position early can make things easier.
Where the fixtures position needs to be established between seller and purchaser, considering it before completion can make it easier to obtain the information and cooperation required.
WORKING WITH D:CA
Specialist support without adding complexity to the transaction
We work alongside you, your client and their existing advisers to establish the capital allowances position and identify what is required.
Our role is to provide the specialist input, while keeping the process clear for everyone involved.
Early involvement
Bring us in while the transaction is progressing, particularly where the fixtures position or previous claims are unclear.
Specialist expertise
We deal with the capital allowances position, so you do not have to become the specialist.
Clear communication
We explain what information is required and work with the existing professional team throughout the process.
FREE GUIDE
Capital Allowances & Commercial Property Transactions
Our practical guide for solicitors covers the questions worth asking during a commercial property transaction, when Section 198 may matter, what information to gather and when specialist input may be required.
Inside the guide
01 Questions worth asking during a transaction
02 Section 198 and the importance of property history
03 What to gather and when to involve a specialist
REFER A TRANSACTION
Not sure of the position? Send us what you have.
You do not need to establish the capital allowances position before contacting us.
Send us the basic transaction details and our specialist team can carry out an initial review. If further information is required, we’ll let you know what we need.
No need to have all the answer
Send us the information currently available.
Specialist review
We’ll establish whether the capital allowances position requires further investigation.
We work with the existing team
Where appropriate, we can liaise with the client, accountant and other advisers involved.