Many buyers of commercial property are not claiming capital allowances on the purchase. Although there is no tax relief for the purchase of commercial land or buildings, buyers can claim for the fixtures, fittings, plant and equipment attached to them.
Plant and machinery include many "integral features" of commercial property ranging from electrical, heating and water systems to lifts. Most commercial premises have these assets. Pubs, restaurants, or nursing homes generally have significant assets attached to the bricks and mortar.
A purchaser's right to claim is restricted if the previous owner has already claimed capital allowances. We fully investigate the capital allowance history of a property for clients and advice them or their accountants on potential claims.
So, what if you have already purchased a property but have not made a claim? Presently, tax payers have two years to make or amend a capital allowances claim. But this is set to change in April 2012, when the Government intends to withdraw the opportunity to make late claims, even if the tax payer still owns the asset.
Buyers of commercial property within the last two years need to act now and have until April 2012 to submit any claims for capital allowances on past purchases.
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