The director of a manufacturing company had transferred the ownership of the property from which it traded to his personal pension. Pension funds cannot claim capital allowances. The transaction had completed just under two years previously without the capital allowances issue being addressed. The client’s accountants hadn’t made any CAs claims, and the company was about to lose out on valuable tax relief.
WHY DID SIX FORWARD GET INVOLVED?
The client’s solicitor had identified the problem and that the client’s accountants had never claimed CAs. Time was running out to correct this. He put Six Forward in touch with the client to see what could be done before the opportunity passed. For CAs to be compliant with HMRC rules they need to comply within two years of the transaction completing. The deadline was just 12 weeks away from original instruction.
HOW DID WE HELP?
The true capital allowances history had to be established. An understanding of the precise levels of capital expenditure on the original purchase of the building, plus refurbishments and improvements, was quickly gained and a detailed survey of the building supplemented the information.
On arriving at a fully analysed claim Six Forward also managed the legal requirements for the client to comply with section 198 of the Capital Allowances Act 2001 and realise the claim for the company.
RELEVANT LEGISLATION FOR THIS CASE
Capital Allowances Act 2001 s11, s15, s176 & s181
WHAT WAS THE OUTCOME?
