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Capitalise on those allowances – a time limit reminder

In April 2014 new rules were introduced in relation to making claims for capital allowances on expenditure in buildings in prior years.  The new provisions prescribe that for a purchaser to secure capital allowances they must enter into an election with the seller within 2 years after completion.  If you work this backwards this means that any deals completed soon after the date this was introduced are now approaching the deadline.  Purchasers who transacted in or soon after April 2014 risk losing out on the tax relief altogether if they do not obtain a signed election before April 2016.  Not only will the purchaser lose out on their own relief, they will also restrict their ability to pass on the benefit of valuable tax relief when they sell on.  The allowances will be lost forever.

 

 

Date: 24th March, 2016
Author: Cathy Corns

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