This practice note looks at how capital allowances on fixed plant and machinery apply on sales of commercial property and the issues that need to be considered when drafting or negotiating a clause in a property sale contract.

NOTE: This practice note is no longer maintained. On 1 May 2017, the Standard Commercial Property Conditions (Third Edition) (SCPC (Third Edition)) were introduced. We have produced a PN that refers to the SCPC (Third Edition), see Practice note, Property contracts: dealing with plant and machinery capital allowances (SCPC (Third Edition)).