HMRC have announced changes to the SBA legislation due to be finalised later this summer. Revised legislation has also been published.
The Structures and Buildings Allowance (SBA) was announced on 29 October 2018 with immediate effect. On 17 June 2019 HMRC announced changes to the SBA legislation due to be finalised later this summer. This week’s announcements and publication of revised legislation confirm the SBA is on track. The changes are relatively minor and most of them appear to be helpful. Some areas of possible difficulty remain in which HMRC guidance will be critical.
This latest announcement includes a summary of responses to the draft legislation published in March 2019 and a revised draft of the legislation. HMRC will publish final legislation together with guidance later in the summer of 2019. Our previous commentary on the original draft legislation can be found here.
HMRC’s responses in the four main areas of the consultation are as follows:
Other points and changes (some of which are reflected in the revised draft secondary legislation) include:
There are some changes to the amendments to the chargeable gains rules which are needed to mesh in with HMRC’s thinking on SBAs. This includes preventing double taxation and double deductions and clarifying the rules on demolition. In addition, new rules have been introduced for capital contributions.
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