Taxation logo taxation mission text

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

Capital allowances on property transactions

08 March 2022 / Cal Byers
Issue: 4831 / Categories: Comment & Analysis
Fixing relief

Key points

  • Is the business eligible to claim capital allowances?
  • To claim for qualifying fixtures in the purchased property the relevant allowances must first be pooled by the vendor.
  • Consider the asset’s full history and the entitlement of each previous owner.
  • Integral feature uplifts can identify up to 15% of the purchase price as qualifying for special rate pool allowances.
  • For purchase claims and improvement expenditure there is no time limit to identify assets which qualify for capital allowances so long as the business still owns the asset.

Capital allowances represent the tax relief available to businesses on their capital expenditure. In addition to allowances available on expenditure on purchasing assets and improving a business’s existing assets relief may also be available for the fixtures present in buildings bought through a property transaction.

Basics – who can claim

The first step is to consider whether the business...

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.
back to top icon