John Lovell (Lovell Consulting) provides some practical guidance on the new allowance following publication of HMRC's guidance.
Until 29 October 2018 the UK was the only G7 country not to have tax depreciation for all commercial property expenditure. The stated objective of the structures and buildings allowance (SBA) is to improve the international competitiveness of the UK. However a new tax relief that will be applied over a period of 50 years is unlikely to achieve this. With the lower 6% rate for integral features it will take 11 years to write down just 50% of the cost and 23 years to write down 75%.
The complexity of the SBA and its lack of competitiveness is highlighted by the approach taken by other countries. Ireland for example has a 12.5% corporation tax rate and writes off all...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
John Lovell (Lovell Consulting) provides some practical guidance on the new allowance following publication of HMRC's guidance.
Until 29 October 2018 the UK was the only G7 country not to have tax depreciation for all commercial property expenditure. The stated objective of the structures and buildings allowance (SBA) is to improve the international competitiveness of the UK. However a new tax relief that will be applied over a period of 50 years is unlikely to achieve this. With the lower 6% rate for integral features it will take 11 years to write down just 50% of the cost and 23 years to write down 75%.
The complexity of the SBA and its lack of competitiveness is highlighted by the approach taken by other countries. Ireland for example has a 12.5% corporation tax rate and writes off all...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
