Capital Allowances - Structures and Buildings Allowance: initial equality impact assessment
Published 4 November 2019
© Crown copyright 2019
This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gov.uk.
Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.
This publication is available at https://www.gov.uk/government/publications/capital-allowances-structures-and-buildings-allowance--2/capital-allowances-structures-and-buildings-allowance-initial-equality-impact-assessment
Project objectives
As part of a drive to increase business investment and support growth, a new capital allowance has been introduced by the government for individuals and corporate bodies who incur expenditure on new buildings and structures.
The new allowance was announced at the Autumn Budget 2018 and came into effect on 29 October 2018.
This allowance will be claimed as a deduction as part of a customer’s main tax return (Income Tax Self Assessment (ITSA) and Corporation Tax (CT)). Therefore, we would expect the customer to be able to claim the allowance when completing their return online.
The allowance will be claimed as part of the customer’s current annual process and, therefore, should not create any additional users.
We want customers to be able to claim the allowance both digitally and, where applicable, in paper format - therefore, HMRC is introducing additional boxes on all relevant tax returns to capture the allowance.
This will allow HMRC operators to be able to identify when this allowance has been claimed to analyse its impact and identify any non-compliance.
All relevant HMRC systems will also be enhanced to allow HMRC operators to process forms and carry out business as usual (BAU) activities.
HMRC forms, guidance, notes and helpsheets will need to be updated to ensure that the allowance is being claimed correctly.
Customer groups affected
The customer groups that will be impacted by the change are:
- limited companies
- self-employed individuals
- tax agents
- IT/software developers
What customers will need to do
As a result of this change, customers will need to:
- enter amount of the allowance in the relevant box on their tax returns
- maintain relevant documentation to allow them to make a valid Structures and Buildings Allowance (SBA) claim
- access the service online (third party software/HMRC online portal) or where applicable, paper returns
- do this from April 2020 onwards
Assessing the impact
We assessed the equality impacts on all the protected characteristic groups in line with the Equality Act and Public Sector Equality Duty and section 75 of the Northern Ireland Act.
Racial groups
Impact on customers
The Capital Allowance - SBA population will be made up of diverse racial groups - there is no evidence to suggest any specific impacts on customers in this protected characteristic group.
Disabled and not disabled
Impact on customers
No evidence, as above.
Gender
Impact on customers
No evidence, as above.
Gender reassignment
Impact on customers
No evidence, as above.
Sexual orientation
Impact on customers
No evidence, as above.
Age
Impact on customers
No evidence, as above.
Religion or belief
Impact on customers
No evidence, as above.
Pregnancy and maternity
Impact on customers
No evidence, as above.
Marriage and civil partnership
Impact on customers
No evidence, as above.
People with dependents and those without
Impact on customers
No evidence, as above.
Political opinion (for Northern Ireland only)
Impact on customers
No evidence, as above.
People who use different languages (Including Welsh language and British Sign Language)
Impact on customers
Yes - the project will consider the Welsh language at every stage of release. All guidance and communications to do with the changes will be available on GOV.UK in Welsh as per the existing Welsh language standards.
Employer Bulletins are to be translated into Welsh and include the information and messages for this project.
Online services and guidance are available in Welsh language. For those customers whose first language is not English, alternative arrangements can be made for friends and family to interpret or speak on their behalf when dealing with HMRC.
HMRC is working with groups such as RAD (Royal Association for Deaf people) to co-develop support material for people who do not use English as a first language (eg British Sign Language) to explain how to communicate with HMRC using digital services.
Opportunities to promote equalities
We have considered opportunities to promote equalities and good relations between people in each of the equality groups, but none have been identified within the scope of this project.