The building and refurbishment of farm buildings is now more financially viable following the announcement of a new Structures and Buildings Allowance (SBA) in the Autumn Budget 2018.

That is according to Richard Corbett from Roger Parry & Partners in Oswestry, who says the allowance will make a significant difference to farm investment by allowing landowners to offset two per cent of the building cost against income tax or corporation tax each year, for the next 50 years.

Although the tax saving in itself is not a huge incentive, Roger Parry & Partners believe that, combined with improved building efficiencies, it may be enough to tip the balance when farmers are looking to update their infrastructure.

“Alongside the increase in the annual investment allowance, to £1m/year, this is the biggest thing to come out of the Budget,” he said.

“Since the government abolished the agricultural buildings allowance in 2011 there has been no tax relief available on new farm buildings, so this is an exciting change.”

The SBA applies to the building or refurbishment of commercial buildings from October 29, 2018.

Where contracts have been signed or work commenced before 29 October 2018, the SBA will not be available, although it may be possible to claim partial eligibility, if one contract has been signed covering the structure, but another is yet to be agreed for the concrete, for example.

Richard added: “As ever there is plenty of small print with this new allowance. Our team of experts are on hand to help.”