{"id":297,"date":"2023-07-09T15:35:51","date_gmt":"2023-07-09T15:35:51","guid":{"rendered":"https:\/\/www.caselect.co.uk\/?p=297"},"modified":"2025-04-04T09:14:42","modified_gmt":"2025-04-04T09:14:42","slug":"structural-and-buildings-allowance-sba","status":"publish","type":"post","link":"https:\/\/www.caselect.co.uk\/cy\/structural-and-buildings-allowance-sba\/","title":{"rendered":"Structures and Buildings Allowance (&#8216;SBA&#8217;)"},"content":{"rendered":"<h2 class=\"wp-block-heading has-medium-font-size eplus-wrapper\"><strong>What is the Structures and Buildings Allowance (SBA)?<\/strong><\/h2>\n\n\n<p class=\"eplus-wrapper eplus-styles-uid-24b8d8\">Businesses investing in new or renovated commercial buildings can benefit from a valuable form of tax relief known as the <strong>Lwfans Strwythurau ac Adeiladau (SBA)<\/strong>. Introduced in October 2018, the SBA allows eligible businesses to claim tax relief for the construction costs of commercial structures and buildings over a period of time.<\/p>\n\n<p class=\"eplus-wrapper eplus-styles-uid-24b8d8\">This blog provides a practical overview of how the SBA works, who can claim, and how it fits into broader capital allowances planning for property owners and investors.<\/p>\n\n\n<h2 class=\"wp-block-heading has-medium-font-size eplus-wrapper\"><strong>What does the Structures and Buildings Allowance cover?<\/strong><\/h2>\n\n\n<p class=\"eplus-wrapper eplus-styles-uid-24b8d8\">The SBA provides tax relief for the costs associated with constructing, renovating, converting or improving non-residential structures and buildings.<br>Eligible costs typically include:<\/p>\n\n<ul class=\"wp-block-list eplus-wrapper eplus-styles-uid-42c861\"><li class=\"eplus-wrapper eplus-styles-uid-b40b81\">The original construction of a building or structure<\/li>\n\n<li class=\"eplus-wrapper eplus-styles-uid-b40b81\">Renovation or conversion works<\/li>\n\n\n<li class=\"eplus-wrapper\">Associated professional fees (such as architects, surveyors, or legal advice directly linked to the project)<\/li>\n\n\n\n<li class=\"eplus-wrapper\">Demolition and land alterations necessary for the building works<\/li>\n<\/ul>\n\n<p class=\"eplus-wrapper eplus-styles-uid-24b8d8\">However, it is important to note that <strong>land costs<\/strong>, <strong>planning permission costs<\/strong>, and expenditure on <strong>plant and machinery<\/strong> are excluded from the SBA. Plant and machinery items continue to qualify for different types of capital allowances.<\/p>\n\n\n<h2 class=\"wp-block-heading has-medium-font-size eplus-wrapper\"><strong>Who can claim SBA?<\/strong><\/h2>\n\n\n\n<p class=\"eplus-wrapper\">SBA is available to:<\/p>\n\n\n<ul class=\"wp-block-list eplus-wrapper eplus-styles-uid-78ba64\">\n<li class=\"eplus-wrapper\">Companies<\/li>\n\n\n\n<li class=\"eplus-wrapper\">Individuals<\/li>\n\n\n\n<li class=\"eplus-wrapper\">Partnerships<\/li>\n\n\n\n<li class=\"eplus-wrapper\">Other businesses subject to UK income or corporation tax<\/li>\n<\/ul>\n\n<p class=\"eplus-wrapper eplus-styles-uid-24b8d8\">Claims can be made whether you <strong>build the structure yourself<\/strong> or <strong>purchase a newly constructed property<\/strong> where no previous owner has made a claim.<\/p>\n\n<p class=\"eplus-wrapper eplus-styles-uid-24b8d8\">If you purchase a second-hand building where SBA has already been claimed, you may inherit the remaining allowance if certain conditions are met.<\/p>\n\n\n<h2 class=\"wp-block-heading has-medium-font-size eplus-wrapper\"><strong>What properties qualify?<\/strong><\/h2>\n\n\n<p class=\"eplus-wrapper eplus-styles-uid-24b8d8\">To claim SBA, the building or structure must be intended for <strong>qualifying activities<\/strong>, such as:<\/p>\n\n<ul class=\"wp-block-list eplus-wrapper eplus-styles-uid-8cb3c6\">\n<li class=\"eplus-wrapper\">Commercial trading activities<\/li>\n\n\n\n<li class=\"eplus-wrapper\">Managing an investment property business<\/li>\n\n\n\n<li class=\"eplus-wrapper\">Professions, vocations or other chargeable activities<\/li>\n<\/ul>\n\n\n<p class=\"eplus-wrapper\">Examples of qualifying properties include:<\/p>\n\n\n<ul class=\"wp-block-list eplus-wrapper eplus-styles-uid-76143a\">\n<li class=\"eplus-wrapper\">Swyddfeydd<\/li>\n\n\n\n<li class=\"eplus-wrapper\">Factories<\/li>\n\n\n\n<li class=\"eplus-wrapper\">Warehouses<\/li>\n\n\n\n<li class=\"eplus-wrapper\">Retail units<\/li>\n\n\n\n<li class=\"eplus-wrapper\">Gwestai<\/li>\n<\/ul>\n\n<p class=\"eplus-wrapper eplus-styles-uid-24b8d8\"><strong>Residential properties<\/strong>, including dwellings or buy-to-let properties, do not qualify for SBA. Furnished holiday lettings, following the upcoming abolition of the FHL regime from 2025, will also no longer benefit from favourable capital allowances treatment.<\/p>\n\n\n<h2 class=\"wp-block-heading has-medium-font-size eplus-wrapper\"><strong>Points to watch<\/strong><\/h2>\n\n\n<p class=\"eplus-wrapper eplus-styles-uid-24b8d8\"><strong>Mixed-use buildings<\/strong>: Only the non-residential portion qualifies for SBA; residential areas (like flats) must be excluded.<\/p>\n\n<p class=\"eplus-wrapper eplus-styles-uid-24b8d8\"><strong>Plant and machinery split<\/strong>: Fixtures that qualify for Annual Investment Allowance (AIA) or other capital allowances must be separately identified and claimed.<\/p>\n\n<p class=\"eplus-wrapper eplus-styles-uid-24b8d8\"><strong>Expenditure timing<\/strong>: SBA is only available from the point the structure comes into use, not before.<\/p>\n\n<p class=\"eplus-wrapper eplus-styles-uid-24b8d8\"><strong>No balancing adjustment<\/strong>: If you sell a property before fully claiming the SBA, there is no balancing charge. However, the remaining claim passes to the buyer.<\/p>\n\n<p class=\"eplus-wrapper eplus-styles-uid-24b8d8\"><strong>Safleoedd Freeport a Pharthau Buddsoddi<\/strong>: If your building project is located within a designated Freeport or Investment Zone, an enhanced SBA may be available at a higher rate of 10% per annum. You can find more details in our <a class=\"\" href=\"https:\/\/www.caselect.co.uk\/cy\/enhanced-structures-and-buildings-allowances-in-freeports\/\">Enhanced Structures and Buildings Allowances in Freeports guide<\/a>.<\/p>\n\n<p class=\"eplus-wrapper eplus-styles-uid-24b8d8\">The SBA is claimed as a <strong>fixed annual deduction<\/strong>, based on a flat percentage of the original eligible construction cost.<\/p>\n\n<ul class=\"wp-block-list eplus-wrapper eplus-styles-uid-8de652\">\n<li class=\"eplus-wrapper\">For expenditure incurred on or after <strong>1 April 2020<\/strong>, the annual allowance rate is <strong>3%<\/strong>.<\/li>\n\n\n\n<li class=\"eplus-wrapper\">This means the qualifying expenditure can be written down over a period of <strong>33\u2153 years<\/strong>.<\/li>\n<\/ul>\n\n<p class=\"eplus-wrapper eplus-styles-uid-24b8d8\">The claim must be included in your tax return, and importantly, businesses must keep a detailed <strong>allowance statement<\/strong> containing key information, including:<\/p>\n\n<ul class=\"wp-block-list eplus-wrapper eplus-styles-uid-9a2672\">\n<li class=\"eplus-wrapper\">The date the structure was first brought into use<\/li>\n\n\n\n<li class=\"eplus-wrapper\">The construction costs<\/li>\n\n\n\n<li class=\"eplus-wrapper\">Any prior claims made<\/li>\n\n\n\n<li class=\"eplus-wrapper\">The date of any subsequent disposal or sale<\/li>\n<\/ul>\n\n<p class=\"eplus-wrapper eplus-styles-uid-24b8d8\">This statement must be passed on to any buyer if the property is sold, ensuring continuity of the claim.<\/p>\n\n\n<h2 class=\"wp-block-heading has-medium-font-size eplus-wrapper\"><strong>Sut y gall CA Select Helpu<\/strong><\/h2>\n\n\n<p class=\"eplus-wrapper eplus-styles-uid-24b8d8\">Understanding the Structures and Buildings Allowance and how it interacts with other capital allowances can be complex, particularly for larger or mixed-use developments. We help businesses and their professional advisers accurately identify qualifying expenditure, prepare HMRC-compliant reports, and ensure that no valuable tax relief is missed.<\/p>\n\n<p class=\"eplus-wrapper eplus-styles-uid-24b8d8\">If you are planning a new project, recently completed construction works, or considering the purchase of a newly built commercial property, <a href=\"https:\/\/www.caselect.co.uk\/cy\/contact\/\" data-type=\"page\" data-id=\"9\">speak to us today<\/a> about how SBA can form part of your tax planning strategy.<\/p>\n\n<p class=\"eplus-wrapper eplus-styles-uid-24b8d8\"><a href=\"https:\/\/www.caselect.co.uk\/cy\/contact\/\" data-type=\"page\" data-id=\"9\">Cysylltwch<\/a> with CA Select for expert advice on capital allowances and property tax relief.<\/p>","protected":false},"excerpt":{"rendered":"<p>What is the Structures and Buildings Allowance (SBA)? Businesses investing in new or renovated commercial buildings can benefit from a valuable form of tax relief known as the Structures and Buildings Allowance (SBA). Introduced in October 2018, the SBA allows eligible businesses to claim tax relief for the construction costs of commercial structures and buildings [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","editor_plus_copied_stylings":"{}","footnotes":""},"categories":[230],"tags":[232,231],"imc_layers":[],"imc_icons":[],"class_list":["post-297","post","type-post","status-publish","format-standard","hentry","category-sbas","tag-capital-allowances","tag-structural-building-allowance"],"imc_loc":"","imc_img_tag":null,"_links":{"self":[{"href":"https:\/\/www.caselect.co.uk\/cy\/wp-json\/wp\/v2\/posts\/297","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.caselect.co.uk\/cy\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.caselect.co.uk\/cy\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.caselect.co.uk\/cy\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.caselect.co.uk\/cy\/wp-json\/wp\/v2\/comments?post=297"}],"version-history":[{"count":3,"href":"https:\/\/www.caselect.co.uk\/cy\/wp-json\/wp\/v2\/posts\/297\/revisions"}],"predecessor-version":[{"id":2150,"href":"https:\/\/www.caselect.co.uk\/cy\/wp-json\/wp\/v2\/posts\/297\/revisions\/2150"}],"wp:attachment":[{"href":"https:\/\/www.caselect.co.uk\/cy\/wp-json\/wp\/v2\/media?parent=297"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.caselect.co.uk\/cy\/wp-json\/wp\/v2\/categories?post=297"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.caselect.co.uk\/cy\/wp-json\/wp\/v2\/tags?post=297"},{"taxonomy":"imc-layer","embeddable":true,"href":"https:\/\/www.caselect.co.uk\/cy\/wp-json\/wp\/v2\/imc_layers?post=297"},{"taxonomy":"imc-icon","embeddable":true,"href":"https:\/\/www.caselect.co.uk\/cy\/wp-json\/wp\/v2\/imc_icons?post=297"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}