The rules for claiming capital allowances on property fixtures are complicated. They dictate the level of tax relief available to buyers, sellers, landlords and tenants. The agreement reached between the parties on capital allowances must be clearly set out in the relevant contract. Unfortunately, property solicitors rarely have a comprehensive knowledge of this complicated area of taxation. This can result in flawed contract provisions for capital allowances, leading to confusion, disputes and ultimately a loss of tax relief for one or both parties to the contract. It is therefore vitally important that due diligence on capital allowances is carried out prior to the finalisation of any property transaction.
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The rules for claiming capital allowances on property fixtures are complicated. They dictate the level of tax relief available to buyers, sellers, landlords and tenants. The agreement reached between the parties on capital allowances must be clearly set out in the relevant contract. Unfortunately, property solicitors rarely have a comprehensive knowledge of this complicated area of taxation. This can result in flawed contract provisions for capital allowances, leading to confusion, disputes and ultimately a loss of tax relief for one or both parties to the contract. It is therefore vitally important that due diligence on capital allowances is carried out prior to the finalisation of any property transaction.
If you or your firm subscribes to Taxjournal.com, please click the login box below:
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