Co-ownership structures and property fixtures claims

Key points

• Partnerships with a corporate partner are not eligible to claim annual investment allowances.
• Simplified rules on capital allowances apply to co-ownership authorised contract schemes.
• A real estate investment trust may claim capital allowances despite its tax exempt status.
• The position of syndicates and annual investment allowances is ambiguous.

Property fixtures claims can add significant value to a client’s commercial property ownership. Typically 5% to 40% of a property’s purchase price including a proportion of stamp duty land tax might be claimed on a purchase or from a ‘historic’ review of a long-held property. Navigating carefully through the entitlement rules can bear out a successful claim which inexperience might otherwise leave fallow. Higher percentages can sometimes be claimed on fit-outs and without the associated entitlement jungle to pick through.

This article outlines how property capital allowances work for different forms of property co-ownership vehicles – partnerships ...