Structures and buildings allowance consultation - Law Society response
HM Treasury and HM Revenue and Customs (HMRC) have invited views on the detail of draft secondary legislation on a proposed new capital allowance for new non-residential structures and buildings.
This initiative is intended to support business investment in the UK and improve the case for developing new structural assets.
We welcome the introduction of the new structures and buildings allowance.
We suggest that the government should:
- monitor the allowance following its introduction
- consider reducing the period over which the depreciation is allowed for buildings and structures with an expected lifespan of less than 50 years
We question the policy objectives for the different treatment between buying used and unused buildings from developers and the restrictive way in which relief is given for undepreciated expenditure on demolition or destruction of a building or structure.
What this means for solicitors
Solicitors advising on relevant development projects and their clients should monitor the implementation of these new rules.
The consultation closed on 24 April.
We expect a final version of the regulations to be published soon.
Once in force, the legislation is expected to apply to eligible costs incurred on or after 29 October 2018 in line with the commencement provisions.
Read the consultation on the GOV.UK website