{"id":1842,"date":"2025-10-21T12:52:41","date_gmt":"2025-10-21T12:52:41","guid":{"rendered":""},"modified":"2026-07-26T16:24:07","modified_gmt":"2026-07-26T14:24:07","slug":"capital-allowances-on-second-hand-property-purchases","status":"publish","type":"article","link":"https:\/\/leyton.com\/uk\/insights\/articles\/capital-allowances-on-second-hand-property-purchases\/","title":{"rendered":"Capital Allowances on second-hand property purchases"},"content":{"rendered":"\t\t
In this article, we explain the rules around claiming Capital Allowances<\/a> on second-hand property purchases while also offering our advice for both buyers and sellers.<\/p>\n\n\n\n When buying a second-hand commercial building with fixtures on which Capital Allowances have been, or could have been, claimed by the seller, certain conditions must be met for the purchaser to claim allowances on those fixtures:<\/p>\n\n\n\n Failure to meet these conditions can result in the purchaser not being able to claim any Capital Allowances on the fixtures, and potentially the seller having their previously claimed allowances clawed back.<\/p>\n\n\n\n From a practical perspective, buyers and sellers will often agree to the pooling of expenditure and then fix the value of the fixtures (via a s.198 election) as part of the disposal process with agreed actions set out in the legal documentation for the sale and purchase of the property.<\/p>\n\n\n\n It is strongly advisable to meet this requirement as part of the sale negotiations and by way of a s.198 election at the time of sale\/purchase. This provides certainty and is more cost and time efficient. It is also very difficult to agree this after the fact.<\/p>\n\n\n\nWhen you can claim Capital Allowances on second-hand buildings<\/h2>\n\n\n\n
Our advice for buyers and sellers<\/h2>\n\n\n\n
How Leyton can help<\/h2>\n\n\n\n