With effect from 1 April 2014, the rules for capital allowances on fixtures changed for purchasers.
What are capital allowances?
Going back to basics, capital allowances are a tax relief on the purchase, refurbishment, build or extension of commercial premises. Capital allowances save you (the property owner) money by reducing your tax bill.
The most common form of capital allowances found in commercial property is fixed plant and machinery. It includes equipment such as heating, ventilation, hot water, air conditioning and much more and cannot be removed like chattels, when a building is sold.
How does this affect you?
As much as 30% of the purchase price may qualify for relief and this could generate significant tax savings over several years. However, following the recent changes, capital allowances must now be established prior to exchange of contracts or the relief will most likely be lost forever.
If you would like to find out more about capital allowances contact us on 0141 248 7015 or email us at email@example.com