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Tax relief on commercial property

Q: I spoke to a client today who was telling me about the building that his company has purchased, and asking if there were any allowances that he could claim as he vaguely recalls reading something about ‘buildings allowances’ towards the end of last year.

A: I believe your client is referring to the ‘Structures and Buildings Allowance’ outlined in the 2018 budget. Section 30 (1)(a) of the 2019 Finance Act confirms that only ‘expenditure incurred on or after 29th October 2018 on the construction of a building’ qualifies. The relief allows a claim for 2% of the qualifying expenditure to be taken as a deduction for tax, on a straight line basis. As your client has not spent on construction his expenditure is not qualifying expenditure therefore no relief is due.