CA91600 - Structures and buildings allowance (SBA): allowances: expenditure incurred before qualifying activity carried on

CAA01/S270BN

If expenditure is incurred on the construction of a building under contracts signed on or after 29 October 2018, but the qualifying activity for which the building is constructed is not started until a later date, you treat the expenditure as being incurred on the date the qualifying activity commences.

Example

Mel plans to open a veterinary practice in summer 2020, so starts building the surgery on 1 September 2019. The building is completed on 20 April 2020 and Mel opens for business on 1 June 2020 bringing the surgery into use for the first time. The expenditure incurred on construction of the building is treated as incurred on 1 June 2020, for the purposes of claiming SBA.