Print

This is an at a glance free view guide to the Structures and Buildings Allowance. Subscribers see Structures and Buildings Allowance 

A new Structures and Buildings Allowance (SBA) has been introduced for qualifying expenditure incurred on or after 29 October 2018. it applies for income tax and corporation tax.

At a glance

The allowance is 2% of cost on a straight-line basis for a 50-year period.

What type of expenditure qualifies for the SBA?

What are qualifying activities?

SBA applies to capital expenditure on structures and buildings used for qualifying activities:  

 Structures and buildings include:

Can I claim the SBA on expenditure on dwellings and land?

No. Expenditure on residential property and other buildings that function as dwellings will not qualify:

How does the SBA apply to leasehold property?

What if my expenditure qualifies for other capital allowances?

How do I deal with qualifying expenditure which has multiple uses?

Do renovations and later additions to the property qualify?

What about changes in the use of the structure or building?

What about periods of disuse, change of use, damage to and demolition of  the property?

What happens when there is qualifying expenditure by a person not chargeable to tax?

Where construction costs are incurred by anyone not in the charge to UK tax:

What about when the building or structure is sold?

What is an Allowance statement?

Anti-avoidance rules

To ensure relief can be obtained only for genuine business costs on actual construction works, anti-avoidance rules deny or restrict the relief in certain circumstances.

Links to our useful guides:

Structures and Buildings Allowance
A
guide to the Structures and Buildings allowance, who can claim, what expenditure is eligible and how to make a claim.

Annual Investment Allowance (AIA)
What is the Annual Investment Allowance? What are the limits? What expenditure qualifies?

Fixtures: overview
What are fixtures? How do I claim lost or unclaimed fixtures? When must fixtures be pooled?