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Draft legislation has been published for the new Structures and Buildings Allowance which differs from the original proposals announced in October 2018.

At Budget 2018 the chancellor announced the introduction of a new Structures and Buildings Allowance (SBA) for the construction costs of non-residential structures and buildings to be provided on eligible construction costs:

The original proposals provided that allowances would be paused during periods of temporary disuse, however, following consultation, this was determined to be too complex to manage and has been removed from the draft legislation. Instead, allowances will continue even when the qualifying use of the property ceases, except where the property is instead used for non-qualifying purposes (such as residential use) in which case allowances will not be available.

The proposals also provided that allowances could continue to be claimed when a building is demolished. This has also been removed in the draft legislation. Instead, on the demolition of a building for which the allowances are being claimed:

Finally, the draft legislation introduces two new provisions:

Links to our guides:

Structures and buildings allowance (SBA)

External Links:

Capital allowances for structures and buildings - draft secondary legislation with introductory note