The Government announce today that there are estimated to be nearly 5.5 Million active personal Pension funds. 62% of which are held by men, 38% by women.
These are the number of individuals whose personal pension (including stakeholder pension) has received a contribution during the year, either from themselves, an employer, or a government minimum contribution.
More details here:- http://exactblog.co.uk/wp-content/uploads/2013/01/PEN4__2001-02_to_2012-13_.xls
Pension funds are typically exempt from claiming capital allowances because they are non-taxpaying entities.
Capital Allowances are a form of statutory tax relief available for capital expenditure incurred on certain assets; they enable any entity paying UK tax to write off relevant expenditure against taxable profits and income, resulting in a substantial increase in post-tax profits and income.
Capital allowances are available to all entities (investors and occupiers) liable for UK tax; including:
- UK based companies and individuals investing in assets at home or abroad; and
- Offshore or foreign companies and individuals investing in the UK.
However, the new reules of April 2014 mean that if a person purchases a property from a person who cannot claim capital allowances (eg, a pension fund, charity or company trading in property) a new Pooling Requirement and the Fixed Value Requirement must met if a previous owner of the property was entitled to claim capital allowances.
If the seller is unable to claim capital allowances, it will not be able to either pool its expenditure or enter into a s.198 election. However, the legislation provides that these tests will be met if the relevant conditions had previously been satisfied. The previous owner that was entitled to claim capital allowances must have met the Pooling Requirement and it and the person to whom it sold the building (usually the person now selling the building) must have entered into a s.198 election in order to meet the Fixed Value Requirement. Failure to achieve this will mean that any subsequent purchasers will be unable to claim capital allowances. This may affect the purchase price that the seller can achieve for the property.