On the acquisition or disposal of second hand property, solicitors are responsible for asking and providing replies to Commercial Property Standard Enquiries in relation to capital allowances. What is less clear is where their responsibilities end in interpreting and actioning the answers to those enquiries.
However, from 1 April 2014, there is no further margin for error in respect of this issue – the seller’s capital allowances position must be properly established before exchange of contracts otherwise potentially huge amounts of tax relief may be lost.
The Law Society have issued a Practice Note entitled Capital Allowances: New Pooling Requirements and it sets out the “Best Practice” that they recommend solicitors adopt in respect of this issue. However, initial research indicates that solicitors are either unaware of the practice note or are finding difficulty complying with it.
Gateley Capitus have a complete range of services designed to help solicitors comply with the Law Society practice note and which will mitigate the risk that they are now exposed to following the introduction of the new pooling requirements in Finance Act 2012. Contact Aubrey Calderwood for an initial “no obligation”, discussion on firstname.lastname@example.org