What is the Qualifying Criteria for Land Intensification Allowance (LIA)?
Qualifying Building or Structure
- A qualifying building or structure (referred to as LIA building or structure in this circular) must be built on land that is zoned as Business 1 or Business 2 (excluding Business 1 White or Business 2 White) under the Urban Redevelopment Authority (URA) Master Plan as at the date the development application is made to URA.
- The principal activities of the user of an approved LIA building or structure must fall within one of the qualifying activities
- The user of the approved LIA building or structure must carry out one of the qualifying activities as its principal activity in the building or structure. At least 80% of the total floor area of the approved LIA building or structure must be used by a single user for carrying out of the principal activity.
- The building or structure must also meet the GPR benchmark relevant to the qualifying activities of the single user (relevant GPR benchmark). The relevant GPR benchmark shall be the prevailing GPR benchmark at the date the development application is made to the URA.
- The GPR benchmarks will be reviewed every three years. The latest benchmarks have been reviewed and updated as of 1st August 2013. Please refer to Annex A for the respective prevailing GPR benchmarks for each qualifying activity.
- The LIA incentive will be available to an owner or a buyer of an existing building or structure only if the owner or buyer incurs additional capital expenditure to renovate or extend the existing building or structure to increase the building’s/structure’s GPR and the new GPR of the building or structure meets or exceeds the relevant GPR benchmark. This is applicable even if the GPR of the existing building or structure already meets or exceeds the relevant GPR benchmark before the renovation or extension works. In such cases, subject to approval, the LIA incentive will only be available on the qualifying capital expenditure incurred on the renovation or extension works but not on the purchase price of the existing building or structure.
The following capital expenditures which are incurred on or after 23 February 2010 can qualify for LIA:
(a) cost of feasibility study on the layout of the building or structure;
(b) design fees of the building or structure;
(c) cost of preparing plans for obtaining approval for the building or structure;
(d) piling, construction and renovation/extension costs;
(e) demolition costs of an existing building or structure;
(f) legal and other professional fees in relation to the approved construction or approved renovation/extension; and
(g) stamp duties payable in respect of title of the building or structure.
In addition, only capital expenditures incurred up to the date of the completion of the construction or renovation/extension of the approved LIA building or structure can qualify for LIA.
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