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
-
12 September 2024The High Cost of Overlooking Capital Allowances
Understanding tax benefits and capital allowances is crucial in the world of property investment. Overlooking these aspects can result in significant financial losses. This article explores a real-life case where a couple’s lack of knowledge and expert advice led to a costly mistake. Early involvement... -
3 September 2024
Understanding Continuing Professional Development (CPD)
Understanding, and staying on top of industry trends, no matter the sector is very important. As well as staying up to date with the legislative changes, in order to maintain a competitive edge. This is especially true for professionals who offer advice or services affected by frequent changes in laws...
Contact Us
Our expert team are here to help answer any of your capital allowances questions or enquires you have about your commercial property.