Accountants have raised a dram to the chancellor as they predict a boost in new distillery development next year.
Johnston Carmichael’s capital allowances team said the Structures and Buildings Allowance (SBA), which was announced in the Autumn Budget, offers further incentives that offers liquid courage to the fast growing industry.
The team said capital allowances were a “complex” area of UK tax legislation, but that the new allowance will allow companies investing in distilleries to offset 2% of building costs against annual tax.
The tax boost adds to existing structures such as Enhanced Capital Allowance which encourages energy efficiency improvements, as well as main pool and special allowances that the Johnston Carmichael team has identified for its distillery clients.
The firm said so far this year its capital allowances team has advised on £100 million of new distillery developments across Scotland, as investment into the industry shows no sign of slowing.
It said there is a spate of developments in the pipeline with an increase in available allowances.
Johnston Carmichael partner Michael Murray said: “I’m proud to say we have worked with many of Scotland’s most iconic distilleries to deliver effective tax relief strategies. In the last year alone, we estimate we have advised on £100 million of deals.
“The recent changes to the Capital Allowances legislation will further increase the allowances available which is very positive.”
The firm said previous distillery projects it has worked on include: Ncn’ean, Dalmunach; Kingsbarns; Glenwyvis; Glenrinnes; and Lindores.