Many countries including France and Germany allow tax depreciation in respect of expenditure on buildings and structures often at variable rates. Since the phasing out of industrial buildings allowances (IBAs) the UK has been at a relative disadvantage in not allowing any tax relief for expenditure on buildings or structures. Given that many structures and buildings particularly those intended for industrial or office use are only expected to have a useful life of 20 to 30 years this has produced a distortion between the economic and accounting position (which would require depreciation of expenditure on such a building over its useful life) and the tax position (which was giving no tax relief at all for what was clearly...
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Many countries including France and Germany allow tax depreciation in respect of expenditure on buildings and structures often at variable rates. Since the phasing out of industrial buildings allowances (IBAs) the UK has been at a relative disadvantage in not allowing any tax relief for expenditure on buildings or structures. Given that many structures and buildings particularly those intended for industrial or office use are only expected to have a useful life of 20 to 30 years this has produced a distortion between the economic and accounting position (which would require depreciation of expenditure on such a building over its useful life) and the tax position (which was giving no tax relief at all for what was clearly...
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