Capital Allowances Act 2001 section 270AA

Structures and buildings allowances

Section 270AA establishes the core entitlement to structures and buildings allowances (SBAs), setting out who can claim, the conditions that must be met, the annual allowance rates, and the overall time limits for claiming.

• SBAs are available where construction of a building or structure begins on or after 29 October 2018, qualifying expenditure is incurred on its construction or acquisition, and its first use after that expenditure is non-residential
• The annual allowance is 3% of qualifying expenditure (or 10% for freeport qualifying expenditure), and the claimant must hold the relevant interest in the building or structure while it is in non-residential use
• Allowances can be claimed over a maximum of 33⅓ years from first non-residential use (or 10 years for freeport qualifying expenditure), after which the entitlement expires
• A building temporarily out of use is treated as still in non-residential use provided it was in non-residential use immediately before it fell into disuse, but entitlement ceases permanently if the building is demolished