A new tax relief intended to support business investment in the construction of new buildings and structures or refurbishment of existing buildings, will be granted for costs incurred after 29th October 2018.
The relief will be given for qualifying costs incurred for:
- Retail and wholesale premises
- Walls, bridges, tunnels
- Factories and warehouses
- Premises used as hotels and care homes
Where the business itself develops the structure or building, rather than acquires it, the cost of any land preparation necessary for construction will qualify for relief.
The relief is available for UK and overseas buildings and structures provided the business is taxed in the UK.
The tax relief is at a rate of 2 percent of the qualifying costs per year over 50 years from the date the building comes into use for a qualifying activity, which generally covers use for a trade, profession or vocation and includes certain UK or overseas property businesses, mines and transport undertakings.
If one year is not claimed then it is lost and if the building is sold then the purchaser continues with the claim over the remainder of the 50 years.
• lifts, escalators and moving walkways
• space and water heating systems
• air-conditioning and air cooling systems
• hot and cold water systems (but not toilet and kitchen facilities)
• electrical systems, including lighting systems
• external solar shading