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!
5 December 2023
Capital Allowances ManualCapital allowances play a significant role in taxation. Allowing businesses to claim deductions for the depreciation of their assets. Among these assets, plant and machinery are frequently mentioned. However, the term “plant and machinery” is not explicitly defined in tax law. It should also...
22 November 2023
Autumn Budget 2023: Changes to Capital AllowancesThe Autumn Budget of 2023 has arrived, and with it comes significant changes and developments the government has put in place. Chancellor Jeremy Hunt delivered the statement on Wednesday, 22 November 2023. For businesses and individuals alike, these adjustments in tax policies can have far-reaching implications.
Our expert team are here to help answer any of your capital allowances questions or enquires you have about your commercial property.