The Chancellor has announced that this new relief will come into effect immediately, providing an annual allowance of 2% of qualifying expenditure for up to 50 years. Expenditure incurred on building or renovating commercial buildings will qualify if the buildings are used for ‘qualifying activities’. Expenditure on land itself or on dwellings does not qualify.

On the sale of a building or structure to which SBAs are available, there is no balancing adjustment, as there can be for other forms of capital allowances, rather the buyer steps into the shoes of the seller and claims the unutilised SBAs on a straight-line basis.

When?
Effective immediately (29 October 2018) with detailed provisions to follow:

Action/Opportunity:
Property Lawyers should familiarise themselves with the detail of the legislation when released, as identifying a seller’s SBAs position will now be an important part of Buyers’ enquiries, and the obtaining of the SBA information will be necessary to ensure a buyer can substantiate a claim for the relief following a purchase.