In order to comply with the s187a and s187b Capital Allowances Act 2001 requirements it is necessary to carry out timely due diligence exercises, on behalf of both the seller and buyer, to ensure the Capital Allowances position is satisfied and to avoid potential deal delay.
Capital Allowances are often missed on transactions due to failure to identify claim opportunities and facilitate adequate contract wording. Such instances include:
- s198 & s183 Election drafting
- Review and entitlement of s181 works
- Analysis of Capital Contribution works
- S562 apportionments v Fixed Value
- Flipping of Industrial Buildings Allowances
- Connected party transfers