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Structures and Buildings Allowance provides relief for qualifying capital expenditure on new non-residential structures and buildings.
Relief is available for eligible expenditure incurred where all the contracts for the physical construction works are entered on or after 29th October 2018 at a rate of 2% on a straight line basis.
The rate was increased to 3% in April 2022.
To access this screen, go to Edit | Buildings Allowance | Structures and Buildings Allowance
Description / Address - enter the description of the asset or address if Freeport has been ticked.
Asset Type - select from a drop-down list of asset types.
Asset No - this is automatically created by the system.
Pre-owned asset - this option can be selected when adding an asset that has been transferred from another owner or the asset was acquired in an earlier period. Selecting this option will allow the entry of a Date of acquisition that is earlier than the period start date.
Non trading asset - tick this box if the Freeport SBA are not included in the calculation of trading profits/losses (if this box is ticked the allowance will be included in the calculation of Property profit/losses)
Freeport – tick this box to indicate that the asset is in a Freeport
Location – select the Freeport Location from the drop-down list (if the Freeport box is ticked a Freeport location must be selected from the drop-down menu)
Date of Acquisition or start of construction - enter the date the asset was purchased/start of the construction project (On or after 29/10/2018).
Date brought into use - this is the date the asset was brought into use and from when the business becomes entitled to the SBA.
Qualifying expenditure incurred - this is the amount of expenditure incurred that the SBA relief can be claimed upon.
WDV brought forward - when the asset is a new addition in the year, this field will be disabled as it is not required. When the asset has been purchased in a prior year or a transfer from another owner then this field is enabled to enter the Written down value b/f at the start of the accounting period
WDA - the writing down allowance is automatically calculated at 3% of the Qualifying Expenditure Incurred amount and it is pro rata-ed for the number of days the asset is in use when it is the year of acquisition or disposal.
Costs incurred are not within charge to UK tax - this option can be selected if the costs are incurred by the Crown or where the income from the qualifying activity is not within charge to UK tax.
Notional WDA - the Notional writing down allowance is calculated at 3% of the Qualifying Expenditure Incurred and deducted from the Qualifying Cost or WDV b/f.
WDV carried forward - this is calculated by the system and is brought forward into the next year as the WDV brought forward value.
Date of disposal - enter the date the asset was disposed.
Disposal Proceeds - enter the disposal proceeds.