What is a Commercial Property Legal Pack?
Essential Documents
A Commercial Property Legal Pack is a compilation of essential documents and information referring to a commercial property that is up for sale or lease. It serves as a comprehensive guide for potential buyers or tenants, offering insights into the legal, financial, and structural aspects of the property.
Capital allowance legislation is complex
Can we support you and your client?
Navigating capital allowance legislation can be complex. Often leading to missed tax savings for your clients and potential damage to your reputation. In extreme cases, clients may even resort to legal action against their advisors.
Our team of specialists is here to alleviate these challenges. We offer tailored legal packs for every commercial property transaction. Offering expert advice, preparing necessary documentation, and meticulously reviewing property aspects related to capital allowances. With our assistance, you can ensure compliance and maximize tax efficiency, safeguarding both your client’s interests and your professional reputation.
Are you comfortable dealing with the following challenges?
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Is your client buying?
- Are the replies to the Commercial Property Standard Enquiry (CPSE.1) valid? If not, do you know why and how to challenge?
- Is there a clause inserted into the Purchase Contract that reflects the parties involved in the transaction specifically and enables you to claim any available tax savings post completion? Standard templates cannot simply be inserted, do you know why?
- Is your Section 198 Election valid? Do you know when a S198 Election is invalid?
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Is your client selling?
- Can you complete Section 32 of the CPSE.1? If this section doesn’t appear to apply to you or you’re not sure what information is required, do you know the risks attached to an empty Section 32?
- Does the Purchase Contract have a clause that suits your preferences to keep or sell capital allowances? Does it reference capital allowances? Every transaction should and templates are not a simple fix.
- Have you prepared a Section 198 Election? Do you need to? Is it valid? Section 198 Elections are not always required however when they are, very few are done correctly.
Get a Copy of the Commercial Property Legal Pack
What our Legal Pack includes:
Acting for the Buyer?
- Commercial Property Standard Enquiries (CPSE.1) – we will review the Sellers responses to Section 32 of the CPSE.1. Advise, challenge etc.
- Purchase Contract – the correct clauses are crucial. We will provide the appropriate clauses to be inserted into the Purchase Contract. This ensures the Buyer has the ability to secure any available tax savings (without delaying the transaction).
- Section 198 Election – we will supply a valid S198 Election and the required supporting documentation so legislation is satisfied and the available Capital Allowances are secured by the Buyer.
Acting for the Seller?
- Commercial Property Standard Enquiries (CPSE.1) – Section 32 relates specifically to the Property Capital Allowances clarifying the Sellers position. We will complete this section and pass it to the acting solicitor.
- Purchase Contract – the correct clauses are crucial. We will provide the appropriate clauses to be inserted into the Purchase Contract. This ensures the Sellers wishes are secured as planned.
- Section 198 Election – we will supply a valid S198 Election and the required supporting documentation so legislation is satisfied and the remaining Capital Allowances are secured by the Seller.
Useful links
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As stated by the CAA 2001, the way in which the seller and buyer agree to the apportionment of the capital allowance for fixtures and fittings in a property being sold is a Section 198 Election.
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CPSE or Commercial Property Standard Enquiries are a standard pre-contract set of enquires passed as a document from the seller to the buyer in a commercial property transaction.
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A Commercial Property Legal Pack is a compilation of essential documents and information referring to a commercial property that is up for sale or lease.
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Property Capital Allowances claims aim to recover tax paid and reduce tax liabilities for companies and individuals that have spent capital buying and/or improving the commercial property.