Capital allowances have been around for years, in various forms and are a valuable tax relief.

Structures and buildings allowance (SBA) is a new allowance that has been introduced. Where costs are incurred on either the purchase of, or on the construction of, a building or structure, on or after 28 October 2018, provided the relevant conditions are met, you may be entitled to claim SBA’s.

In summary, the allowance gives tax relief of 2% per annum for a period of 50 years, which continues even if the building is sold during this 50 year period.

As with any tax relief there are conditions that must be met and documents that are needed for a claim to be made. A specific point to note about SBA’s is that the allowance must actually be claimed in the relevant tax year as, if not done so, it is lost. This is different to other capital allowance claims where it is possible for relief to be claimed in later years.

Another important point with the allowance is that if you buy a structure or building from someone else, and want to claim SBA’s, then you need to get a copy of the allowance statement from the previous owner, otherwise you will not be able to claim SBA’s.

Based on the above alone, I would recommend that you seek advice as early as possible, and definitely before completion, to ensure you are aware of what conditions need to be met and what documents you need, to ensure you are able to claim the allowances you are due.