CA91100 - Structures and buildings allowance (SBA): allowances: conditions
Where qualifying expenditure is incurred on a building, a person is entitled to a structures and buildings allowance (SBA) in relation to a qualifying activity. The SBA may be available to a person for a chargeable period if both of the following conditions are met:
- that person holds the relevant interest in relation to that qualifying expenditure CA90510
- that person has brought the building into qualifying use CA91200.
If a person holds the relevant interest for only part of a chargeable period, a proportional adjustment must be made for the time the relevant interest was held during that period CA91400.
If the building is not in qualifying use for all of the qualifying period, the SBA available is not restricted, providing the building had been brought into qualifying use by the person previously and is not in residential use.
Where a building ceases to be used for a qualifying activity and is converted for use in a non-qualifying activity, entitlement to SBA will cease.
If a building, which originally qualified for the SBA, reverts to qualifying use after residential use, the holder of the relevant interest can resume claiming SBA for the remaining years in which there is qualifying use.
Example
Sadia builds a premises to use as a retail space for her independent clothes shop. As market conditions deteriorate, Sadia decides to convert the building into a residential flat. The day on which the premises starts to be used for a residential purpose is the day on which the entitlement to SBA ceases. The SBA calculation for that chargeable period must be apportioned to the date the residential activity commences.