20th June 2014
Property transactions involving fixtures now requires both the seller and buyer to make a joint election to fix the disposal value of the fixtures and the seller must have pooled those fixtures i.e. included in the seller’s tax return prior to the disposal of the property irrespective of whether the seller is eligible to claim capital allowances. Failure to do either would jeopardize the purchaser’s (and subsequent purchasers) the ability to claim capital allowances on these fixtures.
This could have an adverse impact on the value of the property especially if the purchaser expects to acquire unused capital allowances. For owners of commercial properties looking to cash in on the improving market conditions, it would be advisable to conduct a capital allowance review, if not already done so, of the property to identify qualifying assets and pool them before selling the property.
If you would like to discuss the above please contact Keng.Cheong@wardwilliams.co.uk