Structures and buildings allowance (SBA)

Definition

The structures and buildings allowance is a tax relief and was introduced by the UK government to stimulate investment in the construction industry and support economic growth.

What is the structures and buildings allowance?

It serves as a motivation for businesses to invest in new non-residential structures and buildings.

The allowance applies to capital expenditure on the construction of new non-residential structures and buildings, including costs related to construction, renovation, and conversion. It typically covers costs such as materials, labour, and professional fees directly associated with the construction process.

Qualifying structures and buildings include commercial properties, industrial facilities, offices, and other non-residential structures. The allowance is not applicable to residential buildings.

Businesses can claim the structures and buildings allowance annually as a capital allowance over a period of 50 years. This extended claim period is intended to provide businesses with a long-term benefit for their investment in eligible structures and buildings.

To qualify for the allowance, the business must own the structure or building. This requirement make sure that the tax relief benefits the actual investors in the construction project.

If the ownership of the qualifying structure or building changes, the structures and buildings allowance can be transferred to the new owner, making sure that the tax relief continues to benefit the property’s investors.

Tax laws and regulations may be subject to changes and updates. It’s advisable for businesses to consult with tax professionals or refer to the latest government guidance for the most current information on the structures and buildings allowance.