Capped allowances

In March 2010 my client acquired a commercial property at arm’s length as a letting investment for in excess of £5 million.

The vendor an offshore property fund had owned the property since 2007 when it acquired it for a slightly lower price than now paid by my client.

There is no legal requirement for a CAA 2001 s 198 election simply that the vendor should provide information as reasonably required to allow the buyer to claim capital allowances (CAs) on fixtures at the property.

The vendor is understood to have incurred some expenditure which might have been CA eligible but no claims were made. The vendor has no knowledge of any previous claims.

Although the contract gives no apportionment of the price the property is well-equipped with plant that would always have fallen within that definition...