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Q: My client did a large amount of structural work on a building he owns, and we have claimed structures and buildings Allowance (SBA). The property is now being sold is there any clawback of the relief?

A: For structures and buildings allowance, unlike other types of capital allowances, there are no balancing allowances or charges. Instead, adjustments are made to the capital gains calculation upon disposal. 

According to GOV.UK, the amount of SBAs claimed is aggregated and added to the sales proceeds of the property. This will result in either a higher capital gains tax liability or a reduction in any capital loss.

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These publications from Markel Tax were correct at the time of going to press and should be considered as principles-based guidance only. To check current validity, call the Markel Tax helpline. ICAEW (as distributor) disclaims all liability for any errors or omissions.

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Markel Tax offers expert advice on UK tax and VAT via its helpline and provides monthly FAQs with questions and answers on common tax issues for businesses and practitioners.