Guillotine Provision – Unused Capital Allowances

With effect from 1 January 2015, any unused capital allowances which are carried forward beyond the tax life of the building or structure to which they relate are immediately lost.

Essentially, this means that if the tax life has ended at any time up to the end of 2014, then the unused allowances are lost in 2015. On the other hand, if the tax life is due to end later than 2014 then the allowances are lost in the year following that in which the tax life of the building expires.

If you require further information on the impact of these provisions for you, please do not hesitate to contact us.