One of the major changes announced in the October 2018 Budget was a new capital allowance for structures and buildings, however much of the detail was only published in the recent Spring Statement. This is a summary of the key points:
- It will apply to expenditure on new non-residential structures and buildings incurred on or after 29 October 2018.
- Relief will be given at a flat rate of 2% over a period of 50 years.
- Expenditure on land does not qualify.
- Expenditure on integral features such as electrical systems, air conditioning, lifts, will continue to qualify for annual investment allowance or usual capital allowances.
- There will be no balancing adjustments on sale, the purchaser will instead take over the remaining allowances.
- Expenditure on converting or renovating a building will also be eligible for relief.
- Claims may be made from when the building comes into use.
For more information, contact Lesley Sutton on 01484 550037 or email email@example.com.