Structures and Buildings Allowances
12/05/2022

The Structures and Buildings Allowances (SBA) allows for tax relief on qualifying capital expenditure on new non-residential structures and buildings. The relief applies to the qualifying costs of building and renovating commercial structures. 

The relief was introduced in October 2018 at an annual capital allowance rate of 2% on a straight-line basis. The annual rate was increased to 3% from April 2020, and the corresponding period reduced to thirty-three and one-third years. 

HMRC’s guidance sets out the process for making a claim. In order to make a valid claim a written allowance statement is required. 

The allowance statement must include:

  • information to identify the structure, such as address and description
  • the date of the earliest written contract for construction
  • the total qualifying costs
  • the date that you started using the structure for a non-residential activity

The claimant must also meet the necessary requirements in respect of the building itself and the chargeable period for the claim. 

The start date of the claim is the later of the following two dates:

  • the date when you started using the structure for a qualifying activity
  • the date that you are due to pay for the structure or construction.

No relief is available where parts of the structure qualify for other allowances, such as plant & machinery allowances.


Diss Office

4b Church Street
Diss
Norfolk
IP22 4DD
Phone: 01379 640640
Fax: 01379 650459
Email: diss@newmans-online.co.uk

Beccles Office

7 Hungate
Beccles
Suffolk
NR34 9TT
Phone: 01502 711356
Fax: 01502 711627
Email: beccles@newmans-online.co.uk

Lowestoft Office

17 Surrey Street
Lowestoft
Suffolk
NR32 1LW
Phone: 01502 565857
Fax: 01502 515249
Email: lowestoft@newmans-online.co.uk

Newsfeed Search


Memberships

 

ICAEW White