CA93250 - Structures and buildings allowance (SBA): qualifying expenditure: expenditure on construction or acquisition: site preparation

CAA01/S270BK

It may be necessary to carry out work to prepare the site before construction work on the building can commence. Without specific provision, such expenditure would not be expenditure on the construction of a building.

Capital expenditure incurred on preparing land as a site for construction of a building is treated as if it were expenditure on the construction of the building that is then built upon that site. Site preparation includes cutting, tunnelling or levelling land.

The site preparation costs are added to construction costs for the building, and SBA is available on those costs. Any SBA on site preparation costs will therefore be claimable only when the building is first brought into qualifying use CA92100.

Alteration of land and preparatory costs in relation to the altering of land, as described at CA94010 are excluded.