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Capital Allowances: Property Acquisition

A client purchased two office buildings constructed on the same site for £2.4 million. One building was about 100 years old the other a relatively modern addition to the original. The case was complex in that there were two previous owners since 1996 and HMRC required proof that the claim was not subject to restriction. This was achieved; the works to the building that the tenants had carried out were identified and excluded from the claim as was the underlying land element. A claim was prepared and agreed with HMRC of some £528,000 or 22% of the total expenditure incurred.
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