Capital allowances SBA update

Newsletter issue - July 2019.

HM Treasury and HMRC have recently published a summary and response document relating to the consultation on a new capital allowance for structures and buildings (SBA).

Broadly, the SBA allows businesses that invest in new builds or renovations on or after 29 October 2018, to claim tax relief at 2% a year on eligible costs.

A technical note outlining the key features of the allowances was published at Autumn Budget 2018, with the subsequent draft legislation released for consultation at Spring Statement 2019. Power to introduce the new allowance was contained in FA 2019, s. 30. Detailed legislation will be introduced by Statutory Instrument, which is currently being laid before parliament.

Key features of SBA include:

As a result of the consultation process some features have been amended, including those relating to short-term leaseholds, eligible pre-trading costs, periods of disuse, and reducing claimants' administrative burdens.

The summary of responses to the consultation can be found here.

The (draft) Capital Allowances (Structures and Buildings Allowances) Regulations 2019 can be viewed here.