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Exploring structures and buildings allowances

Bryan Crawford, founder and director of Furasta Consulting, considers the actions that taxpayers and their advisers should be taking when it comes to structures and buildings allowances. Among other things, he goes into detail about qualifying expenditure, qualifying use and allowance statements.

Building blocksStructures and buildings allowances (SBAs) are going to introduce new terminology and a slightly different entitlement basis from existing capital allowances claims. They are going to require planning and more timely analysis of actual construction documentation, along with co-operation from stakeholders. Organisations that sell a relevant interest in a qualifying building project that has not been demolished within the first 50 years of incurring the ‘qualifying expenditure’ are going to be on the hook for assistance with allowance statements. 

If your clients enter into a construction contract for a new building or structure on or after 29 October 2018 you should expect to consider SBAs. Similarly, if your clients have acquired, or are planning to acquire, a new commercial property (including one from the Crown or other public body) that includes works subject to an eligible contract, you should also consider SBAs.