Be aware of the changes to Capital Allowances this April

Some time ago HMRC announced some changes to the capital allowance regime for commercial property.

 

 

In April 2014 these changes come into effect.

 

 

This will mean the following.

 

 

1. Before any commercial property is sold a CAVR (capital allowances valuation report) will be needed.

 

 

2. The buyer and the seller have 2 years to agree a value of the fixtures and fittings  and this will effect the capital allowances

 

 

3. If you sell your property after April 2014 you will need to complete either a SA198 (freehold) or a SA199 (leasehold) to complete the Capital Allowances Report, and  these will form part of the Commercial Property Standard Enquiry (CPSE) documents.

 

 

4. If a seller could have made a capital allowance claim (even if they have not) then any qualifying expenditure must be pooled.

 

 

We recommend that anyone likely to sell a property in the future looks at the capital allowance position before April 2014.

 

 

At OBC we have access to capital allowance specialists who can assist with this.

 

 

Call Eve 01323-720555 now for more details

 

 Technical details can be found on http://www.hmrc.gov.uk/capital-allowances/buildings.htm  

 

Eve 

Eve Wickenden FCA BSc (Hons)

Get in touch for a free Consultation Today

Find out more