relief will be available for new commercial structures and buildings, including costs for new conversions or renovations
relief is available for UK and overseas structures and buildings, where the business is within the charge to UK tax
relief is available for the costs of physically constructing the structure or building, including costs of demolition or land alterations necessary for construction, and direct costs required to bring the asset into existence
relief is available for eligible costs incurred on or after 29 October 2018
the separation for AIA will continue broadly unchanged.
It’s important to note that the first draft of legislation on Structures and Buildings Allowance differs from the original proposals announced in October 2018.
SBA is available at 2% pa (adjusted for longer or shorter accounting period) on a straight line basis of eligible construction costs incurred after 29/10/18, over 50 years, once the structure comes into use.
Per Oct 2018 budget announcement
Amendments in 2019
Allowances to be paused during periods of temporary disuse
Removed, as too complex to manage
Allowance will only be removed for periods during which property is used for a non-qualifying purpose (for example residential use)
SBA does not stop when the building is demolished, but continues for the remaining term until it reaches 50 years
SBA to cease during demolition
Unclaimed SBA to still be available for prior periods
Two new provisions have been added:
expenditure incurred on repairs incidental to qualifying renovation or conversion works will be deemed to be capital and will be within the SBA rules
allowance statement must be issued by the property owner and passed to subsequent owners to enable them to claim SBAs. Without this statement the qualifying expenditure will be treated as nil.