The Law Society has published on its website a practice note: “Capital allowances: new pooling requirements”. It advises that “Commercial property lawyers and tax specialists dealing with the sale or purchase of property containing plant and machinery should read this practice note.”
The practice note runs through the changes outlined above that are being introduced to capital allowances legislation where a change of ownership occurs, and advises that solicitors, whether acting for seller or buyer, should raise the issue of allowances with the client as early as possible. “Failing to do so could result in delays or financial loss to your client. If you are unsure about how to go about this, you should consult a specialist CA adviser, or suggest your client consults one themselves.” Guidance is provided as to the approach to be adopted where acting for a seller (including making sure the client has satisfied the pooling requirement prior to a sale, and entering into a section 198 election to fix the value of allowances) or a buyer (including ensuring that the seller will have satisfied both the fixed-value requirement and the pooling requirement).