Have you overlooked this valuable capital allowance?

by Aitch, posted in Capital allowances

If you have invested in a new commercial building or carried out significant renovation work, you may have overlooked a valuable capital allowance. The Structures and Buildings Allowance (SBA) provides tax relief on qualifying capital expenditure incurred on certain new non-residential structures and buildings.

The SBA applies to qualifying costs incurred when constructing, purchasing or renovating qualifying commercial structures. This can include expenditure on design fees, site preparation, construction works, renovation, conversion and fitting-out costs.

The allowance was introduced in October 2018 at a rate of 2% per year on a straight-line basis. From April 2020, the annual allowance rate increased to 3%, with relief available over a period of 33 and one third years. This rate continues to apply for qualifying expenditure.

To qualify, the structure or building must be used for a qualifying business activity, such as a trade, profession, property business (excluding residential property), or certain other commercial activities. The structure must also meet specific conditions, including having an allowance statement to support the claim.

Claims are made through your tax return, and the relief can generally continue for the full allowance period where the qualifying conditions continue to be met. If you have constructed, purchased or renovated a commercial property since October 2018, it is worth reviewing whether you are claiming all the capital allowances available to you.

Source:HM Revenue & Customs | 06-07-2026
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Aitch
I'm Aitch, the Founder and CEO of CIGMA Accounting Ltd. As a Chartered Management Accountant and as a CIMA member, I've spent more than 16 years helping businesses, entrepreneurs, landlords, and individuals with tax planning, accounting, and HMRC compliance. As a chartered accountant in London, I'm passionate about making complex tax matters easier to understand and helping clients make confident financial decisions. Over the years, I've advised start-ups, SMEs, established companies, and high-net-worth individuals across a wide range of tax and accounting matters. My expertise includes Corporation Tax, Self-Assessment, Capital Gains Tax, Inheritance Tax planning, R&D tax relief, capital allowances, international tax, and resolving complex HMRC compliance issues. Whether clients need a business accountant, tax accountant, or strategic tax advisor, my focus is always on delivering practical advice that creates long-term value. One of my specialist areas is Making Tax Digital (MTD). I've worked extensively with businesses preparing HMRC's digital reporting requirements, helping them move to cloud accounting, improve financial processes, and adopt technology that makes compliance more efficient. I regularly speak at Making Tax Digital roadshows, industry events, and educational sessions in collaboration with Zoho Books, sharing practical insights into digital accounting, tax legislation, and the future of the profession. Many business owners looking for the best accounting firm in London are not simply searching for an accountant they're looking for trusted advice, responsive support, and long-term value. That's the approach I've taken in building CIGMA Accounting. My team and I work closely with businesses across London and the UK, providing accounting services, tax advisory, bookkeeping, payroll, VAT, company accounts, and strategic tax planning tailored to each client's goals. Through this website, I share practical guidance on UK taxation, Making Tax Digital, HMRC updates, Corporation Tax, Self-Assessment, and business finance. My aim is to provide reliable, straightforward information that helps business owners understand changing regulations, reduce compliance risks, and make informed financial decisions with confidence.
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