Although it has now been nine years since the new, more stringent rules on claiming business Capital Allowances on fixtures in property came into force, I have seen a flurry of recent enquiries and situations which show how important it is to consider this at the time of carrying out a purchase or sale of commercial property.
With allowances potentially available on typically 20-40% of a building’s cost, this is not something to be missed out on. But in addition to this, not claiming can be detrimental to a future sale of the property, as a failure to claim fixtures allowances now could well mean that a future buyer would also not be able to claim as a result.
Buyers will often be looking to claim fixtures allowances, and if it becomes apparent that they cannot claim on certain properties, there is a strong chance they could lose interest and look elsewhere.
If you have purchased commercial property in the last two years and not yet considered this, all is not necessarily lost – it is worth reviewing the transaction details to see if a claim may be possible and beneficial.
In addition, allowances now for businesses who are renovating or building commercial property have taken on a new dimension with the advent of Structures and Buildings Allowances, introduced in October 2018. However claiming these new allowances requires specific records to be kept and should therefore be carefully considered.
If you have recently acquired commercial property, are considering it, or are likely to sell commercial property in the near future, please contact us for a free, no obligation discussion about your situation to make sure you are not missing out on any opportunities.
James Geary is a Client Director and head of Corporate Tax – if you have any queries or concerns he can be contacted on 01242 776000 or james.geary@randall-payne.co.uk.
