Structures & buildings

Relief for the qualifying capital expenditure incurred on constructing or acquiring new structures and buildings is available by way of capital allowances known as structures & buildings allowance (SBA). SBA is a straight line writing down allowance given over the allowance period, which starts when the building or structure is first brought into use.

A structure or building where all contracts for construction were entered into on or after the relevant date will qualify for the SBA providing that its first use after the expenditure was incurred is non-residential. The relevant date is:

• 29 October 2018 where Structures & buildings is selected at Type in the Fixed asset register
• The designation date of the Special tax site selected at Special tax site location in the Fixed asset register where Structures & buildings - Special tax sites is selected at Type in the Fixed asset register

New (or second-hand, in the case of a subsequent owner) structures and buildings that qualify for SBA are entered in the Fixed asset register. SBA for new structures and buildings will be based on Net cost, which should therefore reflect the qualifying expenditure. For second-hand structures and buildings, SBA will be based on Original qualifying expenditure of first owner, as entered in the Fixed asset register.

For new structures and buildings, where Acquisition date at Acquisition details is before the start of the period of account you must enter the TWDV b/f even though allowances will be based on Net cost (which is Original qualifying expenditure at Structures & Buildings). For second-hand structures and buildings, where Acquisition date at Acquisition details is in the current or an earlier period of account you must enter the RQE b/f even though SBA is based on Original qualifying expenditure of first owner. In each case, this means the software knows that SBA is still available to be claimed.

Date brought into use / Date brought into use by first owner defines the point in time from which the SBA is available and when the allowance period begins. Where this date falls part way through the accounting period, the WDA is apportioned accordingly. The allowance period ends after:

• 33 1/3 years where Structures & buildings is selected at Type in the Fixed asset register.
• 10 years where Structures & buildings - Special tax sites is selected at Type in the Fixed asset register.

On disposal of a qualifying structure or building, the SBA is given up to the day before the disposal. There is no balancing charge. The new owner is entitled to the SBA, based on the same Original qualifying expenditure, from the day of acquisition by the new owner.

Structures & Buildings List shows all assets where Structures & buildings or Structures & buildings - Special tax sites is selected at Type in the Fixed asset register for all the activities of the company.

To open Structures & Buildings for a particular asset, highlight the asset and select Edit.

Structures & Buildings shows the SBA available in respect of the selected asset.

For structures and buildings outside a Special tax site, the WDA is given at 2% up to 31 March 2020 and at 3% from 1 April 2020.

The owner of a structure or building on 31 March 2020 can claim an additional pre-April 2020 allowance (a ‘catch-up’ writing down allowance) at the end of the 33 1/3 years’ allowance period providing that owner still owns the asset at the end of the allowance period. The ‘catch-up’ writing down allowance is effectively the difference between the WDA calculated at 3% and at 2% for the period from when the asset was first brought into use to 31 March 2020.

For structures and buildings within a Special tax site, the WDA is given at 10%.

To disclaim any of the calculated WDA, enter the amount not to be claimed in the WDA not claimed box.