Spring Statement: Tax allowance unveiled to support commercial property development

This measure will apply only to new non-residential structures and buildings if the construction begins on or after 29 October 2018, as well as to enhance tax relief for such assets.

Relief will be given at a flat rate of two percent over a 50-year period and the relief will be available for new commercial structures and buildings, including costs for new conversions or renovations.

The government is consulting until 24 April on the proposals and an overall response will be published in May 2019.

HM Treasury said the SBA is a long-term commitment to making the UK the prime destination for investment, and that it improves the business case for new investments in structural assets.

It added that as a longstanding request from business, it directly addresses a gap where relief is available for plant and machinery integral to structures and buildings, but not for the latter as constructed assets that lose value over time.