News & Current Issues

Finance Bill 2012 - Capital Allowances Perspective

The draft legislation for Finance Bill 2012 was released on 6 December 2011 with more than a few surprises. Although confirmation that the Enterprise Zone allowance would pass the EU State Aid regulations was received, the proposed rules are perhaps more restrictive than first hoped. Also, the much-maligned consultation regarding Capital Allowances for Fixtures has closed with not all the proposed measures being included.

In a Nutshell...

  • Mandatory Pooling for fixtures will only be required should an owner wish to pass on entitlement to capital allowances. Therefore, no time limit for making capital allowances claims will exist for the current owner.
  • Rather than a separate, formal record of agreement, the value of capital allowances for fixtures must be agreed and documented using current methods upon sale.
  • Enterprise Zone First Year Allowances of 100% will be available for ‘new’ investment in plant or machinery within certain areas.
  • Flat Conversion Allowances will be abolished from April 2013.
  • Land Remediation Relief will now NOT be abolished.
  • Enhanced Capital Allowances for plant or machinery which qualify for payments under the feed-in tariff or renewable heat incentive regimes will NOT be available from April 2012.

Please read more in the Capitus Update on Finance Bill 2012.

Capital Allowances Countdown

Changes are afoot for Capital Allowances that will affect everyone with commercial property holdings.

Draft legislation, published in December, has sought to limit the amount of tax relief in the form of Capital Allowances which may be claimed by property investors and owners.

The changes, once finalised, will come into effect from April 2012 therefore we urge all commercial property owners to urgently review their property assets and ensure they are claiming the maximum tax relief they can in capital allowances. Act now or run the risk of missing out on these valuable tax reliefs!

Capitus can carry out a free initial review of your property portfolio to identify if you could be claiming more.

Contact us now on 028 25647022 or send an e-mail to enquiries@capitus.co.uk.