My client is in the process on purchasing a second hand commercial building within which are contained a number of integral fixtures such as lifts.
The seller is a property developer and as such has held the property in trading stock throughout the ownership period (owned since pre April 2012). Therefore no capital allowances have been available to be claimed by the seller.
Upon purchase, my client would like to claim capital allowances however the legislation contained within FA2012 must be considered for himself (and future potential claimants) however it is not clear to me what the requirements are in this situation.
No valid S198 election is possible as the seller was not entitled to claim capital allowances and so brings no disposal value in under CAA2001 S196 however where does this leave my client, the purchaser in respect of future claims and expenditure to claim allowances on?
The seller previusly bought the property from a receivor and to their knowledge no one previously has claimed capital allowances on these fixtures, however this is not known with any certainty.
Is it just a matter of obtaining a fair value apportionment of the fixtures value and then allowances are available to the purchaser on this value? Is this the only requirement even though it is not known whether any claims have previously been made?
Thanks in advance for any thoughts.....