Early balance date
Buildings

Early balance date

For assets acquired on after 1 April 2005, but before the start of your 2006 tax year you may use the 1993-2005 rates for the asset for the 2006 and subsequent income years. Elect this option in your 2006 income tax return.

Buildings

Use the 1993-2005 rates for:

• buildings acquired as relationship property or under a wholly-owned group company transfer that the previous owner depreciated using the 1993-2005 depreciation rates; and
• buildings that were purchased, or to be built, and the relevant contract was signed prior to 19 May 2005.

Otherwise buildings acquired on or after 19 May 2005 must apply the new rates from the 2006 tax year.

Note: From the 2011/12 income year the rate for buildings with an estimated life of more than 50 years will be zero.

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