Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

The good, the bad and the ugly

08 April 2014 / Alun Oliver , Rupert Guppy
Issue: 4447 / Categories: Comment & Analysis , Business

Reviewing the new capital allowances rules for property transactions


  • 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...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon