Relief available for new buildings, conversions and renovations
12th Nov 2018 / By Alistair Driver
Farmers constructing new buildings or renovating or converting old ones will be eligible for tax relief under a recent change of policy.
In the Budget, Chancellor Philip Hammond announced the introduction of a new Structures and Buildings Allowance (SBA) for new non-residential structures and buildings. Relief will be provided on eligible construction costs incurred on or after 29 October 2018, at an annual rate of 2% over 50 years.
The relief is not limited to farming, potentially applying to all non-residential structures and buildings.
You can read more about the relief here
NPA senior policy Ed Barker said, while the relief falls short of the support needed to stimulate much needed investment in pig buildings, it is very much a ‘step in the right direction’.
“The cost of the new building, renovation or new conversion, will be given tax relief over 50 years in equal instalments. This is not as generous as the Annual Investment Allowance for plant and machinery, which gave full and instant tax relief, but it does offer some incentive to invest in pig buildings – and is better than nothing,” he said.
Farming Minister George Eustice has confirmed that the Government is considering introducing more substantial support to help farmers invest in new buildings under a post-Brexit farm support policy.
Commenting on funding priorities during the committee stage of the Agriculture Bill, Mr Eustice said: “We may also choose to support farmers to invest in more modern housing that is better for animal welfare. In the pig sector, there are some issues with outdated housing that does not lend itself to providing for modern welfare needs such as enriched environments and straw in barns.”
A recent NPA survey showed funding for new pig buildings was by some distance the number one priority for members under a future farm infrastructure scheme.
Ed said the NPA would continue to work with Defra to develop a workable scheme that delivers meaningful incentives to invest in new buildings to improve on-farm productivity and enable producers to continue delivering high animal health and welfare and environmental standards.