Finding £1.4million, despite restrictions on the majority of assets


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Instructed by an accountant on behalf of a private investor to advise on the availability and level of capital allowances following the acquisition of an office building for £18million from a registered charity.

As the seller was a non-taxpayer and unable to claim, we had to determine prior ownership and capital allowances history.  It transpired that the charity had acquired the property from a taxpaying fund in 2003, who had made a comprehensive capital allowances claim, and had entered into an Election under Section 198 CAA 2001 on sale, bringing a disposal value into account for the qualifying Plant and Machinery in the sum of £1.

The private investor, although restricted by the previously Elected figure, was entitled to claim for additional Integral Features such as lighting, general power and cold water installations, that were introduced as qualifying in April 2008, which formerly had not been allowable.

Following a detailed property inspection to identify those additional qualifying assets and to enable us to estimate a replacement cost for the building, we prepared a capital allowances claim as an apportionment of the purchase price.

The total level of capital allowances claimed, despite the restriction on the majority of assets, nevertheless amounted to in excess of £1.4million, being some 8% of the purchase price, and resulted in a tax saving in the first year of approximately £56,000 and over the first three years of ownership of more than £150,000.


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Purchase Price

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Building Type

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Your options here are;

  • Office.
  • Retail: Including high street, shopping centres and retail warehouses.
  • Mixed Use.
  • Industrial: Including warehouses and distribution centres.
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