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Operation of structures and buildings allowance

02 July 2019 / Clive Curd
Issue: 4702 / Categories: Comment & Analysis
Construction expenses

Key points

  • The structures and buildings allowance applies to new contracts from 29 October.
  • Residential buildings do not qualify.
  • For the claim it is necessary to calculate expenditure that is excluded.
  • The claimant must satisfy an allowance statement.

 


The structures and buildings allowance (SBA) was introduced in the autumn 2018 Budget after a recommendation by the Office for Tax Simplification in its report Accounting depreciation or capital allowance (tinyurl.com/otsadcajune). On 18 June HMRC published its response (tinyurl.com/hmrcsbarespjun) to the consultation and revised legislation further to the draft legislation published in March (tinyurl.com/draftsbamar) for the SBA (CAA 2001 s 270AA to s 270IL). A new s 270AA(4) has been added to the effect that if a building or structure is demolished the person ceases to be entitled to the SBA.

The new tax relief is aimed at relieving the capital expenditure on...

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