Catax Solutions, endorsed partner to the Law Society, specialises in carrying out current and retrospective capital allowances claims for all entities, in relation to commercial properties right across the commercial sector. We specialise in cost segregation, through the identification and valuation of fixtures contained within commercial properties.

Never before has the issue of capital allowances legislation been so pertinent when considering the sale or purchase of commercial properties. As from April 2014, a purchaser will only be able to claim capital allowances on a commercial property if both of the following conditions are met. Firstly, the ‘past owner’ must have pooled the fixtures and brought a disposal value into account on sale. Secondly, the ‘Fixed Value Requirement’ (FVR) must be met, usually by virtue of both vendor and purchaser agreeing the value and making a Section 198 CAA2001 election within two years of the disposal. In the event that the parties can’t agree on a value for the fixtures, the matter can be taken to a First-Tier Tax Tribunal. However, this will be costly and therefore, we think, uncommon. We therefore expect the valuation of fixtures and the associated Section 198 election to become a standard provision of all, or certainly most sale and purchase agreements for a commercial property interest - a view endorsed by the Government.

If you are involved with any stage of a commercial property transaction; acquisition, ownership or disposal, it is imperative you are aware of the changes and make sure now is the time to implement a process to deal with this. If you haven’t already done so, now is the time, without question, to bring the whole issue of capital allowances to the attention of your clients.

As a Law Society member, Catax Solutions offer you the following benefits free of charge:

  • Exclusive Law Society members’ section of our website
  • Free access to a capital allowances helpline number and email address
  • Extensive information on capital allowances policies and legislation
  • Relevant downloadable documents
  • Your own Business Development Manager who will help you help your clients
  • Access to an online hub allowing you to see the progress of each of your clients own individual cases

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