Structures and Building allowance

Question 1

What is SBA

Answer 1

SBA allowance allows a capital allowance of 3% on qualifying expenditure incurred on or after the 29th October 2018 on the construction of a building or struture in qualfying use

Question 2

When does the allowance start

Answer 2

From the later of: expenditure is incurred or the asset is brough into use.

This needs to be time apportioned

Question 3

Qualifying expenditure

Answer 3

Capital expenditure incrred on the construction of the building or struture

Also includes expenditure on land prep and land demolition. Professional fee for deisgn / construction

But not expenditure on land, aquiring land or planning premission

Question 4

Other rules

Answer 4

Purpose for business
1st use non residential

Question 5

How

Answer 5

Claimed on tax return.
Allowance statement must be kept outlining..
the date of construction
the date it is brought into use
value of qualifying expenditure

Question 6

What happens when the building is sold

Answer 6

No balancing adjustment.
The remaining allowance is passed on to the purchaser

Any SBA claimed is added to the proceeds in effect clawing back any relief

more of a cash flow relief however most industrical properties are sold at a loss.