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Reviewing the new capital allowances rules for property transactions
KEY POINTS
- Capital allowances will continue to be available on second-hand property.
- Optimising capital allowances improves cash flow.
- The fixed-value pooling and disposal value requirements.
- Failure to comply with the new rules can mean that qualifying expenditure is nil.
- Property owners and advisers should review investment properties held without claiming capital allowances.
The most significant changes to capital allowances since July 1996 were introduced from 1 April 2014.
Contrary to the views of some doom-mongers the good news is that taxpayers will continue to benefit from claiming capital allowances where they incur capital expenditure on an existing property.
CAA 2001 entitles a purchaser to claim tax relief in respect of the proportion of the expenditure that relates to eligible assets – known collectively as fixed “plant...
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