Capital allowances claims: plant in buildings

When preparing capital allowances claims for plant in buildings a combination of specialist tax and property/valuation skills is required. Understanding the complicated capital allowances rules and how they fit within a client’s broader tax affairs is a fundamental prerequisite. In particular on property acquisitions a purchaser’s claim may be restricted by the seller’s disposal value (eg CAA 2001 s 185 or s 198). It is therefore important to establish the correct entitlement and basis of claim before starting any valuation or claim preparation. The precise nature of the valuation techniques involved depends on the type of project. However understanding building costs and being able to prepare supportable cost estimates for construction work are a common feature of all capital allowances claims for plant...