Sale of Buildings

When property owners sell a building and have claimed their entitlement to capital allowances, they should jointly enter into an Election under Section 198 CAA 2001 with the purchaser, agreeing to a disposal value of the Plant and Machinery on which the allowances have been claimed. The maximum disposal value should not exceed the tax written-down value of the Plant and Machinery.

This will not only avoid suffering a clawback (balancing charge) on all or part of the capital allowances benefits enjoyed by the vendor whilst the Plant and Machinery was in their ownership, but it will also guarantee that HM Revenue and Customs will accept the disposal value (within certain prescribed limits).

The statutory period for entering into an Election is two years from signing the Contract of Sale. Whilst it is to the vendor’s benefit to jointly elect a disposal value with the purchaser at the time of sale, it may not always be possible until a later date.

PJB can liaise with solicitors and accountants to assist with the preparation of draft contract clauses and Election Notices under Section 198 CAA 2001 to bring the appropriate disposal values of plant and machinery into account on the sale of the property to minimise future tax exposure.


The information contained in our website is believed to be correct, but there may be errors or omissions for which PJB cannot be responsible. It is therefore essential to take advice on specific issues.


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Purchase Price

This is the original or anticipated purchase price or development cost of your property.

Do not enter the current value here.

Building Type

Please provide the type of building you are looking to claim allowances on.

Note: You will be able to add further information about the type of building in the next step.

Your options here are;

  • Office.
  • Retail: Including high street, shopping centres and retail warehouses.
  • Mixed Use.
  • Industrial: Including warehouses and distribution centres.
  • Other: Leisure, hotels, casinos etc.
Building Category

Please select the description that best suits your property.

Other Information

Please provide any additional information about your property that you may consider appropriate.

Floor Area

Please enter the total floor area of the property.
You can provide either square footage or metres, but only use figures here.
The floor area you specify can either be gross or net internal space.

Floor Area Units

Please select the type of area e.g. Metres or Feet
and if the measurement has been taken as net or gross internal space.

Date of Purchase

Please enter the approximate month and year of purchase, or
if you have developed the property, please provide the
approximate date of completion.

Location Of Property

Where is the property located? Please provide town/city, and country.