SBA part 1

In this lesson

1. 0:00 Structures and buildings allowance overview
2. 0:45 Qualification criteria and timing rules
3. 1:02 SBA calculation method and relief period
4. 2:07 Qualifying expenditure and exclusions
5. 3:11 Worked example: Factory extension analysis
6. 5:21 Capital allowances vs SBA treatment

About this lesson

This video walks you through the key rules: SBA applies only to non-residential buildings constructed after 29 October 2018, is given at a flat rate of 3% per annum over 33⅓ years on a straight-line basis, and must be carefully distinguished from plant and machinery allowances. Using a practical worked example involving a factory extension, you'll see how to correctly apportion costs between SBA and capital allowances (including integral features and movable assets), and how to prorate relief when construction or use begins mid-period. This is essential knowledge for Taxation papers where property-based reliefs appear regularly in both objective tests and case studies. Understanding the distinction between SBA and capital allowances prevents costly errors when calculating taxable profit adjustments. The session emphasises careful question reading to identify qualifying expenditure and the timing rules that determine when relief begins, giving you confidence to handle property scenarios accurately under exam conditions.

Duration: 7m