Capital Allowances for Fixtures in Property Purchases - Live with Steven Bone

Introduction

Capital allowances offer significant tax relief for commercial property/business purchasers, commercial property owner-occupiers, and investors.

However, legislation which introduced significant new obstacles to the capital allowances rules dealing with fixtures (Capital Allowances Act 2001 sections 187A and 187B) is complicated in practice and can remain uncertain.

The likely outcome is that unsuspecting property owner-occupiers and investors will lose capital allowances that they should otherwise be entitled to claim on property acquisitions. Failing to apply the new rules properly will prove costly to purchasers - even potentially damaging the saleability or 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 tax charges if the rules are not applied.

Aimed at general practice tax and property advisers, this virtual classroom session 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 live and interactive broadcast 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
• Pooling requirement (mandatory pooling)
• Fixed value requirement:
• Joint election
• Tribunal application
• Alternative requirements for transactions involving non-taxpayers
• Disposal value statement requirement
• Structures and buildings allowances for purchases
• Importance of adequate due diligence
• Practical implications
• Experience of the rules in operation

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.