Guidance on Structures and Buildings Allowance

The latest HMRC Agent Update includes guidance on the Structures and Buildings Allowance (SBA). This capital allowance is designed to provide tax relief for businesses and to support investment in constructing new structures and buildings and improving existing ones.

The SBA relieves the construction costs for new structures and buildings used for qualifying purposes and the improvement of existing structures and buildings, including the cost of converting existing premises for use in a qualifying activity.

The SBA is available at a flat rate of 2% a year, for up to 50 years, on the eligible costs of building, converting or renovating non-residential structures or buildings that have been brought into qualifying use. Certain costs are specifically excluded such as those costs that qualify for plant and machinery allowances, planning permission, landscaping, cost of land and integral features and fixtures.

For a claim to be valid the date of the earliest contract for construction of the structure or building must be on or after 29 October 2018. The first use of the structure or building must be non-residential.

The Agent Update confirms claims for the allowance must be made on a tax return. However for tax returns up to April 2020 there is no specific box for SBA claims. HMRC advise affected taxpayers to follow the guidance contained in the notes to the returns.

Internet link: GOV.UK Agent Update 75

About us

KBM UK Limited was established in 1987 as an accountancy practice offering quality business and accountancy solutions to owner managed businesses in London and surrounding areas.

Since inception, KBM has continuously raised the bar of its vision, expertise and technology to keep it abreast with the ever changing market trends.

Contact details

020 8992 9090

Accountants in Acton : KBM UK Limited, 1 Concord Business Centre , Concord Road , Acton, London W3 0TJ
Accountants in Luton : KBM UK Limited, 64 Alma Street, Luton, Bedfordshire LU1 2PL

Reg No : 05126385 | Reg Office : Acton office above

We are registered as auditors by the Association of Chartered Certified Accountants in the UK and details of our registration can be found on the Audit Register under registration number 1065993

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