SBA part 2
In this lesson, you'll learn how structures and buildings allowance (SBA) works when a property is sold, and how to calculate the relief for both the seller and the new owner.
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In this lesson
- 0:00 Structures and buildings allowance on disposal
- 0:22 How SBA transfers to the new owner
- 0:49 Capital gains tax adjustment for SBA claimed
- 2:00 Worked example: Jade and Kitty's SBA claims
About this lesson
You'll discover why there are no balancing allowances or charges on disposal, how the remaining 33 and a third year period transfers to the buyer, and crucially, how to handle the capital gains tax adjustment when SBA is reclaimed on sale. Through a worked example involving Jade and Kitty, you'll see step-by-step how to apportion SBA claims across partial years and understand why the original qualifying cost never changes, even when the property sells for a higher price. This is essential knowledge for the TX (Taxation) paper, where disposal scenarios test your ability to apply relief rules accurately and avoid common mistakes.
Duration: 3m
Transcript
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