04: Industrial buildings

A writing-down allowance is currently available for the cost of constructing or enhancing a qualifying industrial building or structure. The allowance each year is 4% of the initial expenditure.

The building or structure must be used for certain types of business, such as manufacturing. Offices and shops generally do not qualify. Hotels qualify if they have at least 10 bedrooms and meet a number of other conditions.

No allowance is given for the cost of the land.

Industrial buildings allowances will be phased out by 2010/11. The first stage, effective from 21 March 2007, is the withdrawal of balancing allowances and charges and adjustments to the recalculation of allowances when buildings change hands or cease to qualify for tax relief.