Structures and Buildings Allowance

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Structures and Buildings Allowance

Structures and Buildings Allowance

Mon 29 Oct 2018

For a number of years there has been no tax relief for the costs of building new commercial buildings and structures in the UK. In response to industry representation construction costs incurred on such premises from today will qualify for tax relief to be given over 50 years. This new relief is to be known as the ‘Structures and Buildings Allowance’. 

Unlike the old Industrial Buildings Allowance, if the structure is sold there will be no balancing allowances or charges: the successor simply claims the remaining allowances until year 50.

Productivity growth should be encouraged and a tax relief for building new, state-of-the-art premises is a good step forward.  It has been anomalous that no relief has been available on such expenditure and so this change is very welcome.

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