Budget blog: New Buildings and Structure Capital Allowances

31st October 2018

In a measure out of the blue, the Chancellor announced a new capital allowance (known as SBA), effective immediately for expenditure on new non-residential structures and buildings.

Relief at an annual rate of 2% on a straight line will be available on eligible expenditure incurred on or after 29 October 2018. This measure is designed to bridge the gap between expenditure that is already qualifying for capital allowances (plant and fixtures), and expenditure that, prior to the budget, was not (non-qualifying expenditure on the fabric of the building).

The relief is not prescriptive in that it is available for the construction of new non-residential buildings and also for the improvement of existing non-residential buildings. However, relief is only available where the contract for the construction is entered into ON or AFTER 29 October 2018.

To find out whether your business could benefit from this new allowance, contact us.