Tax Relief being lost as a result of legislation changes
17th Jul 2020
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In 2014, changes to the legislation came into force that dictated how Capital Allowances should be treated at the point of disposal or acquisition of a commercial property owned by a UK taxpayer. These changes continue to be very misunderstood and the consequences underestimated. We see more and more examples where a property transaction has taken place and the 2014 rules have not been implemented correctly, if at all, and the net result is taxpayers are losing a benefit that they should have been entitled to. In addition to this, property advisers are exposed to negligence claims.
Are you in the process of buying/selling a commercial property?
Have you bought a commercial property prior to April 2014?
Have you bought or sold a commercial property since April 2014?
Have you completed significant property improvements to a commercial property you own or lease?
If the answer to any of these questions is yes, please call and let our expertise clarify the situation.
Case History – what can be lost? One of our clients lost in excess of £160,000 in a transaction which was over two years old and could not be repaired and all parties thought they had implemented the new rules correctly. Could this be you?
Case History – what can be gained? When legislation is understood and applied properly, significant tax savings can be secured. The case study attached illustrates a transaction where both the Vendor and Purchaser have secured tax savings and the property advisers involved are not exposed to the risks.
If you or your clients have bought or sold a property within the last two years or in the process, contact us as we provide free support.
As one of the leading experts on capital allowances, our multi-disciplinary team has helped accountants and their clients to maximise tax relief against property expenditure. With over 19 years’ experience in highlighting embedded fixtures and fittings within commercial property that qualify for tax relief, our focus is supporting accountants...