PKF calls for more commercial property tax breaks

PKF has called for Alistair Darling to issue a new raft of tax breaks to help out the property sector and businesses trying to secure premises as the financial storm rages on.

The firm said the rules should be revisited because the most recent changes to the UK’s capital allowance regime took effect from April 2008, long before the brunt of the recession and lack of financing hit developers.

James Welch, property taxes partner at PKF Accountants & business advisers said, 'While the new annual investment allowance is helping smaller businesses, cutting other allowances to pay for it did little to encourage developers and large businesses to invest in new factories or business premises.'

'With the industrial buildings allowance being phased out, the property sector needs new tax reliefs to help boost commercial developments.'

Because allowances on commercial buildings are now less generous, Welch believed this was not a time to be removing incentives to invest.

Welch added: 'We already have special allowances for energy-efficient plant and machinery, so why not introduce similar allowances for energy-efficient expenditure on the rest of the building? This would encourage energy-efficient refurbishments and back up the Government’s pronouncements about carbon dioxide targets and creating jobs in the green economy.'