Capital Allowances - Please Can You Help?
I really should be starting 2015 in a more positive frame of mind but there is a large (ish) cloud on the horizon for capital allowances claims specialists everywhere.
As you may be aware the capital allowances claims rules for "fixtures" in commercial property changed in April 2014. Without going over old ground and repeating myself too much the main point to take on board is "if a tax paying entity or individual buys a commercial property then their ability to make a retrospective claim for capital allowances after completion may be severely limited or even non-existent".
What this means is that conveyancing solicitors now have more of a responsibility for understanding the new rules and giving sound advice to their clients which may be just to point them in the direction of a capital allowances specialist.
Why Am I Feeling Pessimistic?
My impression is that solicitors, who have generally been confused by capital allowances, are now even more bemused than ever. They are burying their heads in the sand faster than an ostrich in a war zone. What this means for anybody buying a commercial property is, there is a very good chance that potentially valuable tax relief could be destroyed unless somebody gets to the buyer early in the process and gives them some sound advice.
Accountants Have a Chance To Add Real Value
However all is not lost because many accountants have taken the time to understand the new rules and can help to remedy the situation. That is as long as they know that their client is planning to buy a commercial property of course!! So if you are an accountant with a client and you know they are going to be buying a commercial property then please do not assume that their conveyancing solicitor is going to be giving them sound advice when it comes to capital allowances. Please advise them to speak to a capital allowances specialist as soon as possible before the transaction is so far down the line that the situation cannot be altered.
That was a plea for understanding on behalf of capital allowances claims specialists everywhere. A Happy & Prosperous New Year to you and your clients (especially the ones who own commercial property).