About our client
This property had long term tenants on all residential apartments, with the communal areas owned personally. The Client had income creating tax liabilities charged at 40%.
About the claim
We ensured previous owners had not already claimed the Property Embedded Fixtures and Fittings (PEFFs) and gained a full understanding of the Clients’ tax position. This is to ascertain whether the Client could benefit from our expertise.
Due to the Client’s tax status, this meant the amount of tax that will be saved as a result of the PEFFs totalled £148,900.
The potential consequence of the 2014 legislation change:
If this property was acquired post-2014 and the PEFFs were not dealt with accordingly, this tax saving would have been lost entirely!