CA90010 - Structures and buildings allowance (SBA): outline: background

An enhanced rate of SBA was announced at Spring Budget 2021 for the costs of constructing or acquiring new buildings in freeport tax sites. At Spring Budget 2023, it was announced that this would be amended to extend the enhanced rate of SBA to Investment Zones CA94750.

The structures and buildings allowance (the SBA) was announced at Budget 2018 with legislative powers introduced in section 30 Finance Act 2019. 

CAA01/PART2A was inserted by SI2019/1087.

The SBA is a capital allowance for the costs of constructing or acquiring new structures and buildings incurred on or after 29 October 2018.  Only structures or buildings where all contracts for construction were entered into on or after 29 October 2018 will qualify for the SBA CA90200.

Before the SBA, the only capital allowance available for the costs of structures or buildings was for the purposes of qualifying research and development activities although, prior to April 2011 some relief was available for certain types of industrial structures or buildings.

The general conditions for making a claim are set out in CA90100.

Definitions

In the SBA part of this guidance all references to a ‘building’ include a ‘structure or building’.

All legal references are to Capital Allowances Act 2001 (‘CAA01’) unless otherwise stated.  

Other guidance

General introductory guidance for claiming capital allowances for structures and buildings (GOV.UK).