Introduction to this document

Capital allowances for fixtures in buildings record

Since April 2014 it has been crucial for prospective buyers of second-hand commercial buildings to ensure that the seller has allocated their expenditure on fixtures to a capital allowances pool before the sale. If they haven’t, then the buyer won’t be able to claim capital allowances on them. Therefore, it’s important to have an up-to-date record of all expenditure on fixtures and the capital allowances claimed.

Identify the fixtures

For the seller. To ensure that a building containing fixtures is readily saleable (and commands a better price), you should maintain accurate records of all your expenditure on fixtures, together with evidence that you (and all previous qualifying owners since April 2014) have pooled such expenditure. The records should include a description of the fixture, the date it was acquired, the original cost, the capital allowances claimed and the identity of the installer. Use our Capital Allowances for Fixtures in Buildings Record to identify and record the fixtures and fittings within a building that qualify for CAs.

For the buyer. If you’re buying a commercial property, you’ll need to make sure the pooling requirement has been met by the seller. Provide the seller with the document so that they can identify any fixtures which they haven’t claimed capital allowances on so that they can pool these prior to completion.