The Scotsman

Scottish distilleri­es to receive boost from new tax allowances

- By HANNAH BURLEY

Johnston Carmichael has highlighte­d its advisory work on £100 million of new distillery developmen­ts across Scotland, as the firm suggests an increase in available allowances is poised to boost the country’s distillery boom.

The accountanc­y and business advisory company esti- mated that its team had assisted with such a total value of deals in the distilling industry in the past year, successful­ly identifyin­g capital allowances of between 40 per cent and 60 per cent for seven completed distillery projects north of the Border.

It said the number of new and refurbishe­d distilleri­es gearing up for launch will continue to climb as the sector benefits from the rising popularity of craft drinks, with ten new gin distilleri­es set to open in 2019.

The introducti­on of the Structures and Buildings Allowance, which was announced in the autumn Budget and gives a flat rate 2 per cent allowance on eligible constructi­on costs, will further increase the levels of allowances available to distill- eries next year. Michael Murray, partner at Johnston Carmichael, said: “Capital allowances is a complex area of UK tax legislatio­n, but the benefits can be significan­t.

“The recent changes to the capital allowances legislatio­n, introduced in the autumn Budget, will further increase the levels of allowances available which is very positive for all new developmen­ts.” 0 Michael Murray: tax changes ‘positive’ for new distilleri­es

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