Tax relief could soon be offered on integral building fixtures such as brise soleil and active facades, if the Treasury's consultation document Business Tax reform – Capital Allowances Changes is formalised.

However, action needs to be taken on who gets the tax relief, said Clive Searle, of Davis Langdon Crosher & James.

The document raises the possibility of a 10% tax relief on energy efficient building design. Searle said: “The changes hint that the government is changing tack with regards to energy efficient building design and the consultation on opening up tax relief to integral building fixtures is good.

“However, capital allowances were originally created as an incentive for people to invest and, as such, they are only available to investors. The tax relief needs to be widened to include developers, the people who build the property, because they are not being incentivised to build greener.”

Government currently uses the carrot and stick of regulations such as Part L and local authority rules alongside green incentives. However, the incentives are not sizeable or easy to obtain.

Source

Building Sustainable Design

Postscript

To view the consultation visit www.hm-treasury.gov.uk