B3.272 Expenditure qualifying for structures and buildings allowance
For the latest New Development, see ND.1944.
Structures and buildings allowance (SBA) is given in respect of qualifying expenditure1. 'Qualifying expenditure' is expenditure which is 'qualifying capital expenditure' on the construction or purchase of a building or structure, and which is not 'excluded expenditure'2.
If capital expenditure is incurred on the construction of a building or structure and the relevant interest has not been sold (or has been sold only after the building or structure has been brought into non-residential use), that expenditure is the qualifying capital expenditure3. If the capital expenditure is incurred on different days after the building or structure has been brought into non-residential use, it may be treated for allowance purposes as incurred on any of the following days:
• the latest day on which qualifying capital expenditure on construction is incurred
• the first day of the chargeable period following that in which that latest day falls; or
• the first day of the chargeable period following that in which the day on which the expenditure is incurred falls4
For this purpose (and for the purposes of the provisions below), the amount of the construction expenditure is taken to be the sum of all of the items of expenditure the actual amount of which can be shown. If there are no such amounts, the construction