Property Acquisition and Disposal

Tax relief through Capital Allowances may be available as an apportionment of the purchase price of a property, subject to whether claims have previously been made by owners and the scope of these claims.

It is critical to investigate the capital allowance position as early as possible in the acquisition process to identify any previous claims and ensure that the acquisition contract is tailored to maximise the capital allowance position for whichever party Jex Capital Allowances is acting on behalf of whether they are the seller or purchaser.

Eligible claims on acquisitions include new property developments or second hand property purchases.

Pre-acquisition, Jex Capital Allowances can undertake the required investigations, provide early estimates of the quantum and assist the legal team to ensure the correct actions and contractual clauses are incorporated into the contract, to maximise the tax relief available.

Post-acquisition, on behalf of the purchaser, we can survey the property and calculate actual quantum of the allowable capital allowances within the relevant classifications.
 
On disposal, failure to identify the capital allowance position and enter into an Election under Section 198 CAA 2001, can result in a clawback (balancing charge) on all or part of the capital allowance benefits enjoyed by the vendor.  Where no previous claim has been made, we can provide advice to maximise the sale value.
 
For specialist consultation advise on this topic, contact the team at Jex Capital Allowances as early in the acquisition/disposal process as possible.

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