Wednesday, February 23rd, 2011
The Finance Bill temporarily halted proposals to curtail tax relief to some groups of property investors; these are now subject to an economic assessment of their impact…
Implementation of Budget Measures?
There was strong criticism of the Budget proposal to change Capital Allowances and restrict property based incentives.
The recent Finance Bill makes the Property Restrictions subject to a Commencement Order. Delivering the 2011 Bill, the Minister for Finance observed that a wide range of concerns had been expressed regarding the potential effects on the real economy, and on employment in particular. Given these concerns, the government decided that an economic impact assessment should be taken in advance of the commencement of budget provisions.
The new measures are due to come into effect on 1st January 2012 by way of the afore-mentioned Commencement Order which will be made by the Minister for Finance. However, it is not yet known who the Minister will be at the time, and it is recognised that he/she may decide not to proceed with the implementation of restrictions in the manner laid out in the Bill.
The future for property Tax Relief…
The proposed cuts may have been temporarily halted; however, the fact remains that some Capital Allowances could still be phased out within as little as 11 months. Note, the intention to impose cuts has been signaled; now it is possible that other property tax incentive schemes may follow…
Therefore it is important to have your entitlement reviewed to ensure that your clients, or your company do not ignore this valuable relief. CapAll Solutions can survey the construction of your property and calculate the embedded plant and machinery costs and subsequent tax relief that you are entitled to.
Do not miss out on your Free Review – it’s too late when the Tax Relief is abolished!!!
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