[Jo-louise Brown]

We have some properties which have developer allowances transferred due to “Will or intestacy”. Do the allowances remain or cease due to “new owners”.

[Matthew Saunders]

Hi Jo-Louise,

For subdividers allowances (14T on the valuation list), the allowance expires three years from June 30 after the DP is registered (or if building or other works have commenced etc) so depending on how long the allowance has been on you may continue it until this expires if there isn’t long to go, and if you want to avoid a legal fight.

For a profitable expenditure allowance (14L on the valuation list), these expire 15 years after the expenditure was incurred (or if building or other works have commenced etc) so there is a bit more at stake and you may want to get legal advice about this one if these apply.

Alternatively you could remove the allowance, sighting that they are not the owner and it has been removed under the Act. If they don’t question it, you can continue and move on. If they question it you could then get advice and/or reinstate the allowances.

My gut feeling is that the allowances should probably continue.

Matthew.

[Trevor Holland]

Hi Jo-Louise

THe Valuer General have a list of policies on the following website that may be of assistance with relation to your question on developer allowances.

http://www.valuergeneral.nsw.gov.au/publications/policies

If, after reading the information, you are still unsure it would be advisable to refer the matter to your legal advisor for clarification.

Regards
Trevor

[Jo-louise Brown]

Thanks for your assistance.

[Author]

Posts