The law puts the onus on the transaction
Since April 2014, a buyer can only claim fixtures if the seller pooled them and the value is fixed, usually by a s198 or s199 election within two years (s187A CAA 2001).
Partners · Legal
Protect your client’s allowances before exchange
Commercial property lawyers at TLT, Brodies, Gilson Gray, Hill Dickinson and thousands of other firms across the UK use us to deal with capital allowances on transactions. We answer the CPSE questions, agree the s198 election and indemnify the work.
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Working with law firms including
Why a specialist
What a capital allowances specialist adds
We work with thousands of firms across the UK. Here’s why they bring us in rather than handle allowances in-house.
CPSE replies are a growing negligence risk
Blank, ‘nil’, £1 or ‘refer to accountant’ answers in the capital allowances section of CPSE 1 regularly cost buyers and sellers six-figure sums.
You need numbers, not just clauses
The election needs a defensible value for the fixtures. Our surveyors and tax specialists provide it, so the figure stands up for both sides.
Indemnified work
Our partners receive an indemnity against consequential losses on tax savings for the work we carry out.
When to bring us in
Occasions we support
Acting for a buyer
We review the seller’s capital expenditure history, raise the right enquiries and make sure the s198 election captures the full qualifying value.
Acting for a seller
We confirm what the seller has claimed, value unclaimed fixtures so they can claim before sale, and agree an election figure that protects their position.
Heads of terms stage
The best time to involve us. Allowances can be priced into the deal rather than argued about after exchange.
Share purchases and portfolio deals
We review the target’s pools and the history of each property so the allowances are reflected in the price and warranties.
Lease grants and surrenders
Landlord and tenant contributions (s537 CAA 2001) and fit-out spend decide who claims. We set out the position for the lease.
A missed election within two years
If the two-year window is still open, a tribunal application can fix the value. We assess whether it’s worthwhile.
£700m+allowances identified
2 yearsto agree a s198 election
100%HMRC approval on submitted reports
1,000sof firms we work with across the UK
★★★★★
I have worked with HMA Tax for several years in a professional capacity and have frequently recommended their services to my clients and contacts. I’ve always received an excellent service and those I’ve referred a very positive experience.
Getting started
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Meet the team
A short call to agree how we’ll work with your clients.
Refer and track
Introduce clients and follow every claim in the partner portal.
Questions partners ask
What should the CPSE capital allowances replies say?
They should confirm whether the seller has claimed, the amounts pooled, and that a s198 election will be entered into at an agreed value. We can draft the replies.
Who signs the s198 election?
Both buyer and seller, within two years of completion. It fixes the fixtures’ value for both parties and is notified to HMRC.
Is there a cost to the client?
There is no fee for an embedded capital allowance review if we can’t identify previously unclaimed allowances. For transaction support, ask us about fees for the specific instruction.
Do you provide CPD for property lawyers?
Yes, on s198 elections, CPSE and the pooling requirement.
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