Following the release of our recent blog Structures and Buildings Allowance – Capital Allowances (published 30 June 2021), HMRC have published a policy paper on a proposed additional requirement for preparing an allowance statement. The allowance statement is required to make a claim for Structures and Buildings Allowance (“SBA”) and this proposed amendment will have effect once the next Finance Bill 2021-22 receives Royal Assent. In order to make a claim for the SBA, the current requirements that the allowance statement must meet are as follows: Details of the building or structure; The date of the earliest contract for the construction of the building or structure; The amount of qualifying expenditure incurred on its c...

Structures and Buildings Allowances (“SBA”) was previously introduced to provide relief on qualifying expenditure on non-residential commercial buildings or structures incurred on or after 29 October 2018. SBA is a form of capital allowances which allows the SBA to be deducted when calculating the taxable profits for the business. Since its inception, there have been some changes to the allowance and further changes were announced in the Finance Act 2021 on Freeport qualifying expenditure. Please note that this article does not discuss requirements where the 'relevant interest' is the lease of a building. What expenditure can qualify for the SBA? The SBA is available for qualifying expenditure on non-residential commercial str...