Capital allowance legislation is complex
Can we support you and your client?
Understanding and applying capital allowance legislation is difficult, resulting in tax savings being lost entirely for your clients and reputations being negatively impacted. In some cases, we even seen clients take legal action against their own advisor.
Our team of specialists can prepare legal packs specifically for each commercial property transaction. This service provides advice, prepares the relevant legal documentation and reviews aspects of the property relating to property capital allowances.
Are you comfortable dealing with the following challenges?
Is your client buying?
- Are the replies to the Commercial Property Standard Enquiry (CPSE.1) valid? If not, do you know why and how to challenge?
- Is there a clause inserted into the Purchase Contract that reflects the parties involved in the transaction specifically and enables you to claim any available tax savings post completion? Standard templates cannot simply be inserted, do you know why?
- Is your Section 198 Election valid? Do you know when a S198 Election is invalid?
Is your client selling?
- Can you complete Section 32 of the CPSE.1? If this section doesn’t appear to apply to you or you’re not sure what information is required, do you know the risks attached to an empty Section 32?
- Does the Purchase Contract have a clause that suits your preferences to keep or sell capital allowances? Does it reference capital allowances? Every transaction should and templates are not a simple fix.
- Have you prepared a Section 198 Election? Do you need to? Is it valid? Section 198 Elections are not always required however when they are, very few are done correctly.
What our Legal Pack includes:
Acting for the Buyer?
- Commercial Property Standard Enquiries (CPSE.1) – we will review the Sellers responses to Section 32 of the CPSE.1. Advise, challenge etc.
- Purchase Contract – the correct clauses are crucial. We will provide the appropriate clauses to be inserted into the Purchase Contract. This ensures the Buyer has the ability to secure any available tax savings (without delaying the transaction).
- Section 198 Election – we will supply a valid S198 Election and the required supporting documentation so legislation is satisfied and the available Capital Allowances are secured by the Buyer.
Acting for the Seller?
- Commercial Property Standard Enquiries (CPSE.1) – Section 32 relates specifically to the Property Capital Allowances clarifying the Sellers position. We will complete this section and pass it to the acting solicitor.
- Purchase Contract – the correct clauses are crucial. We will provide the appropriate clauses to be inserted into the Purchase Contract. This ensures the Sellers wishes are secured as planned.
- Section 198 Election – we will supply a valid S198 Election and the required supporting documentation so legislation is satisfied and the remaining Capital Allowances are secured by the Seller.