01 / Introduction

There are a variety of tax reliefs and credits that can help property owners and occupiers mitigate expenditure on their buildings. The most recent to be introduced is the Structures and Buildings Allowance (SBA), which arrived in the autumn Budget of 2018 and is applicable to contracts entered into from 29 October 2018.

Prior to the introduction of SBA, tax relief for building construction was usually limited to expenditure on plant or machinery, such as electrical and mechanical services installations, lifts, escalators, fire-fighting equipment, sanitary installations, telecommunications equipment and various other fixtures and fittings.

As items considered to be part of a building or structure do not ordinarily qualify as plant or machinery, the introduction of SBA is a welcome addition, intended to fill the gap in the capital allowances regime for other parts of non-residential real estate assets, and has been promoted as offering a significant benefit to property owners and occupiers.

However, while SBA does offer value, it also presents claimants with considerable compliance and administrative burdens. This article will outline the practicalities of claiming SBA, together with highlighting some of the challenges claimants may encounter.

Read more…