Pension Funds and Non-Tax Paying Entities


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Most pension funds are excluded from claiming capital allowances, as they are not subject to either UK income or corporation tax. However, it is important that pension funds do not ignore capital allowances in property transactions to ensure asset value is not reduced. Pension funds and other non tax paying entities (such as charities) can still benefit from the capital allowances regime in the following instances:

  • Where they communicate to potential purchasers that capital allowances are available in relation to the sale of the property. This may allow them to negotiate a better sale price.
  • Where they purchase a property, knowing that the vendor may wish to retain capital allowances.  In this instance, it may be possible to negotiate a lower purchase price, as the fund will not receive the benefit of the associated tax relief.
  • Helping to ensure that procedures are put in place that would allow the benefit of capital allowances to be transferred to a new owner should the entity wish to sell the property in the future.

Edinburgh Office

The Edinburgh Office
64a Cumberland St

Phone: 0131 610 0056
Mobile: 07909 962279


Glasgow Office


Glasgow Office

22 Montrose Street
G1 1RE

Phone: 0141 432 0056
Mobile: 0770 333 4317


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