Structural Buildings Allowance
Structural Buildings Allowance (SBA) is an entirely new relief designed to write off the construction costs of a building (excluding plant). It will be available to all new commercial property owners where the development commences after 29 October 2018.
The relief is a simple straight-line deduction against profits of 2% of construction costs, excluding land, over 50 years. It is not clawed back on a sale and the benefit of any unused allowance can transfer to a new buyer.
This is a welcome shot in the arm for those owning and investing in UK commercial property and combines well with the fivefold increase to £1 million a year for two years from 1 January 2019, announced in the Annual Investment Allowance.
Perhaps in order to fund some of the SBA, capital allowances on integral plant and machinery are being reduced from 8% writing-down allowance to 6% from April 2019.
In addition, first-year allowances on the energy-efficient plant are to be phased out by 2020.
For further advice about this change visit HMRC
Newsletter containing further information coming soon from Capital Allowance Review Service!
Latest News
20 October 2026Capital Allowances on Property Renovations: The UK Guide for Commercial Property Owners
When claiming in the year of expenditure, Capital allowances on property renovations can typically be claimed through four main routes: the Annual Investment Allowance (AIA), full expensing, first-year allowances (FYAs), and the Structures and Buildings Allowance (SBA). Which ones apply depends on what...
25 September 2026Unclaimed Capital Allowances in the UK: How to Recover the Tax Relief Hiding in Your Property
Unclaimed capital allowances UK-wide are far more common than most business owners realise. HMRC’s own research into capital allowances, found that businesses had limited awareness or understanding of capital allowances. This no doubt resulting in missed tax savings as they aren’t aware the...
Contact Us
Our expert team are here to help answer any of your capital allowances questions or enquires you have about your commercial property.