The SBA provides relief for qualifying expenditure on non-residential structures and buildings. It is designed to give tax relief for structural costs that would otherwise fall outside plant and machinery allowances.
SBA is commonly relevant to new developments, extensions, conversions and significant refurbishment work. It generally captures residual qualifying structural expenditure after plant, fixtures and integral features have been identified and carved out for capital allowances purposes.
The allowance depends on the nature of the works, the date of the contract, the date the structure is first brought into qualifying use and whether the building is used for a qualifying activity. Land costs, residential use, and expenditure already qualifying for plant allowances are outside the intended scope.
SBA should usually be considered after plant and machinery analysis has been completed. This avoids allocating qualifying plant costs to SBA, which would generally give slower relief and may reduce the value of the overall claim.
A supporting SBA statement is required to preserve the claim history and support future owners. Accurate cost allocation, evidence of first use and clear separation from plant and machinery expenditure are therefore key parts of the review.