Flat Capital Allowance Scheme Abolished 2013
March 6, 2012
Capital Allowances - Flat Conversion Allowances: Repeal of Relief
General description of the measure
Flat conversion allowances (FCAs) were introduced in 2001. The scheme was designed to increase the availability of low cost rental accommodation in urban areas by providing 100 per cent capital allowances for the conversion of empty or under-used space above shops and other commercial premises to residential use. The flats must be available for short term letting. FCAs are not available if the flats are of high value or the property in which they are situated was built after 1980. Take-up of the scheme has been much lower than anticipated, suggesting that the relief has not been successful in achieving its objective and is now being repealed.
Operative date
This relief will be withdrawn for expenditure incurred on or after 1 April 2013 for businesses within the charge to corporation tax, and on or after 6 April 2013 for businesses within the charge to income tax.
The entitlement to claim writing down allowance on any outstanding residue of qualifying expenditure will also cease with effect from the same dates.
Capital Allowance: Flat Conversion Allowance Repeal of Relief
