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New Structures And Buildings Allowance

For commercial property only ...

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POSTED BY HELEN BEAUMONT ON 23/11/2018 @ 8:00AM

The Chancellor has announced a new Structures And Building Allowance for new non-residential structures and buildings. This addresses a gap in the current capital allowances system ...

The new Structures And Buildings Allowance is for non-residential property such as shops, offices, factories, warehouses, hotels, and care homes!

The new Structures And Buildings Allowance is for non-residential property such as shops, offices, factories, warehouses, hotels, and care homes!

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Currently, no relief is available for structures and buildings although there are allowances for plant and machinery that are part of the building.

"The new Structures And Building Allowance has a flat rate of 2%!"

This is for the cost of non-residential property such as shops, offices, factories, warehouses, hotels, and care homes. Land, planning costs and parts of the structure which can be classed as plant and machinery will not qualify for this allowance, they are subject to the Annual Investment Allowance and the Writing Down Allowance instead.

If the building is sold, the new owner inherits the flat rate 2% allowance based on the original cost of the building or structure, but there are a couple of important points to note:

  • The new Structure And Buildings Allowance applies to any contract entered into on or after 29th October 2018.

  • Commercial property owners should be aware of the different allowances available for the plant and machinery parts of a building such as electrical, plumbing, air conditioning, security and lift systems.

If you'd like to find out more about Structures And Building Allowance for your commercial property project then do give me a call on 01908 774323 or click here to ping me an email and let's see how I can help you.

Until next time ...

HELEN BEAUMONT


PS:

If you're looking to work with an expert tax advisor with a wide range of tax experience, do visit www.essendontax.co.uk to find out more about me and discover how I can help!


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More about Helen Beaumont ...

Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.

Tax Planning can make a considerable difference to your tax liability. Helen’s specialist knowledge in tax planning and experience ensures every opportunity to minimise your tax bill is utilised. By analysing your investments, income, profit and expenditures, Helen will provide strategic tax planning expertise that could offer significant savings, whilst delivering clear, honest advice and guidance.

When Helen is not at Essendon she spends time with her young son and likes going on long walks with the family dog.