Property sector needs new tax reliefs to help boost commercial developments says PKF
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
‘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.’