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

  • office with furniture
    14 June 2022

    Who are Capital Allowance Review Service?

    Everything you need to know about the Midlands based tax specialists Capital Allowance Review Service, or CARS, specialises in the tax breaks available against capital spent buying, building and/or improving commercial property in the UK & European Economic Area (EEA). Our expertise helps clients...
  • Team photo
    17 May 2022

    Partnering with accountants

    We find partnering with accountants is based on trust, it’s that simple. As accountants, client’s naturally put their trust in you, and you put your trust in us. We’re proud to have provided our specialist support to a wide range of UK based accountancy firms over the years, and have seen first-hand...

Contact Us

Our expert team are here to help answer any of your capital allowances questions or enquires you have about your commercial property.

Sign up to our Newsletter

I confirm that I have read and agree to the Privacy Policy