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Tax relief on business premises

Q: I have just built an extension onto my business premises. I am aware I can claim capital allowances for integral features, but can I get any tax relief for the structure itself?

A: HMRC introduced the buildings and structures allowance (SBA) for expenditure on the construction of new commercial buildings incurred after 29 October 2018. SBA can also be claimed for expenditure on renovation or conversion of a part of an existing building, Expenditure on acquiring the land on which the building is constructed does not qualify for SBA.

SBA is given at an annual rate of 2% of the qualifying expenditure on a straight-line basis over 50 years. It is given as a deduction in calculating the taxable profits of a trade or other qualifying activity.