Capital Allowances for Fixtures in Property Purchases
Capital allowances offer significant tax relief for commercial property/business purchasers, commercial property owner-occupiers, and investors.
However, many advisers are unfamiliar with recent legislation introducing significant new obstacles to the capital allowances rules dealing with fixtures (Capital Allowances Act 2001 sections 187A and 187B).
The likely outcome is that many unsuspecting property owner-occupiers and investors will lose all the capital allowances to which they should otherwise be entitled on property acquisitions. Failing to apply the new rules properly will prove costly to purchasers - even potentially damaging the market price of affected properties - and, therefore, potentially their advisers. The legislation is worded such that an error can never be put right, even if the property is sold.
This is not simply an issue for buyers and their advisers - sellers too can suffer crippling tax charges if the rules are not applied.
Aimed at general practice tax and property advisers this course assumes some knowledge of underlying capital allowances legislation, including definitions of qualifying expenditure, and awareness of section 562 just apportionments and section 198 elections. It is unsuitable for those with an existing specialist knowledge of capital allowances in the context of property transactions.
What You Will Learn
This course will cover the following:
- Recap on underlying legislation and background to change
- Rules for expenditure incurred before April 2012
- Rules for expenditure incurred after April 2012
- Fixed value requirement:
- Joint election
- Tribunal application
- Alternative requirements for transactions involving non-taxpayers
- Disposal value statement requirement
- Additional rules for expenditure incurred after April 2014
- Pooling requirement (mandatory pooling)
- Importance of adequate due diligence
- Practical implications
- Experience of the rules in operation
2:00pm - 5:15pm
Please let us know if you wish to be notified when new dates are added for this programme