Co-ownership structures and property fixtures claims

Property fixtures claims can add significant value to a client’s commercial property ownership. Typically 5% to 40% of a property’s purchase price including a proportion of stamp duty land tax might be claimed on a purchase or from a ‘historic’ review of a long-held property. Navigating carefully through the entitlement rules can bear out a successful claim which inexperience might otherwise leave fallow. Higher percentages can sometimes be claimed on fit-outs and without the associated entitlement jungle to pick through.

This article outlines how property capital allowances work for different forms of property co-ownership vehicles – partnerships co-ownership authorised contractual schemes real estate investment trusts and syndicates. A buyer acquiring a property from a co-ownership vehicle may find their own capital allowances position is determined by the type of co-ownership vehicle used by the vendor.

All references are to the Capital Allowances Act...