Michael Murray

The accountancy and business advisory firm successfully identified capital allowances of between 40 per cent and 60 per cent for seven completed distillery projects across Scotland in the past year.

The firm said investment into the industry shows no sign of slowing, with a spate of developments in the pipeline and an increase in available allowances announced. At least 10 new distilleries are expected to open next year.

The introduction of further tax relief through the Structures and Buildings Allowance (SBA), which was announced in the Autumn Budget, will further increase the levels of allowances available to distilleries in 2019. The SBA gives a flat rate two per cent allowance on eligible construction costs.

Michael Murray, partner at Johnston Carmichael, said: “Over the past five years, I’m proud to say we have worked with many of Scotland’s most iconic distilleries to deliver effective tax relief strategies to enable their businesses to go from strength to strength. In the last year alone, we estimate we have advised on £100 million of deals.

“We get involved at the earliest possible stage in either a transaction, new build or redevelopment, which is the ideal time to maximise the capital allowances position. Capital Allowances is a complex area of UK tax legislation, but by taking the time to plan the approach and by engaging a specialist advisor early in your project, 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.”