Measure

Increase in Structures and Buildings Allowance

The measure

The government has announced an increase in the structures and buildings allowance (SBA) for qualifying expenditure incurred on the provision of structures and buildings from 2% to 3%. 

 

Who will be affected?

Taxpayers who incur capital expenditure on the provision of non-residential structures and buildings. 

 

When will the measure come into effect?

The measure will come into effect on 1 April 2020 for corporation taxpayers and 6 April 2020 for income taxpayers. 

Our view

Despite some of the complexities and uncertainties that abound within the new SBA framework, this 50% uplift in the annual allowance for qualifying expenditure is likely to go some way towards addressing criticism that, for many businesses, the annual relief is not sufficiently beneficial to merit the complexity of compliance.