Capital Allowances for Fixtures – New Rules from April 2012

The Second Hand Fixtures Riddle

Following the Treasury’s Consultation on the ‘tax leakage’ caused by uncertainty in the Fixtures legislation, details of the new proposals for capital allowances on fixtures have been published, ready for implementation post April 2012.

The rules will have significant impact on those wanting to claim allowances on second hand assets, and without due consideration could lead to allowances being denied to purchasers. This would appear to be an unintended consequence of tinkering with the legislation, but could cost taxpayers dearly.