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What is the Structure and buildings allowance? 

What is the Structure and buildings allowance? 

What Is It? 

Companies that have built, leased or bought a structure; such as an office, walls or warehouses; with contracts signed on or after 29 October 2018 and used in its trade or for a qualifying activity may be able to claim tax relief via this allowance. 

Who is it for? 

Businesses that have built, brought or leased a structure. All construction contracts must have been signed on or after 29 October 2018 and the structure: 

  • Must not have been used as a residence the first time it was used or during the period you’re claiming for 
  • Must be used for a qualifying activity 
  • Must have an allowance statement 

How does it work? 

The tax relief rate from 1 April 2020 is 3% per year on qualifying expenditure. 

Qualifying expenditure on construction costs includes fees for design, preparing the site for construction, construction work, renovation, repairs and fit-out costs. 

What should I do next? 

Do get in touch with Charlotte Gage our Business Tax specialist to see if we can help your company maximise its claims. 

First published 25 November 2020
Last Updated 25 November 2020

25 November 2020
First published. 

Find out more about Ian Timms

Ian Timms

Ian Timms

Ian is a Partner and the Head of Business Tax at Critchleys LLP.

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