News: Press Releases:
Tax rules discourage compliance with disability legislation

20 October 2004

New disability discrimination rules, which came into force at the beginning of the month, will require thousands of shops and offices to spend substantial amounts to improve their premises.

A London firm of chartered accountants is calling for a change in the law and for the Inland Revenue to give discretionary relief on all such expenditure in the meantime.

" The tax rules on capital expenditure make no sense," said David Rothenberg of Blick Rothenberg. "They made no specific provision for tax relief on expenditure to comply with disability legislation. Instead businesses have to try and squeeze claims for relief into a straight jacket of rules which have built up over the years, before such expenditure was a legal obligation."

David Rothenberg said that demolition of steps, to be replaced with a ramp will normally not rank for tax relief, but a removable ramp will. Widening doors to allow wheelchair access will normally not rank for tax relief. A replacement door in an unwidened frame probably will. A new path avoiding obstructions will normally not rank for tax relief. A repair to an existing path probably will.

"None of this makes any sense," said David Rothenberg, "and it may actually encourage dishonesty. The rules were amended specifically to provide that expenditure on fire safety specifically ranks for tax relief. It surely is time for the rules to be amended to allow simple tax relief for spending on improvements to premises to comply with disability legislation.

" In the absence of this, the Inland Revenue are forced to give painfully detailed guidance to businesses to help them through the convoluted tax maze, and many will have to seek professional advice."

For more information please call David Rothenberg or Lizzie Jordan on +44 (0)20 7486 0111.

EDITOR'S NOTE:
Blick Rothenberg's client base includes a wide range of private sector companies in a variety of industries as well as professional firms and charities. This breadth of clientele means that they have practical experience of all accountancy issues ranging from UK tax and audits to acquisitions, disposals of businesses and international taxation. They also provide all-round taxation, accountancy and other financial services to their personal client portfolio.
Blick Rothenberg is authorised & regulated by the Financial Services Authority to carry on investment business.