This part of GOV.UK is being rebuilt – find out what beta means

HMRC internal manual

Capital Allowances Manual

Structures and buildings allowance (SBA): evidence requirement: evidence of expenditure


The allowance statement is an additional requirement to facilitate claiming the relief over period of up to 50 years and is intended to ease this process for claimants and HMRC.

The allowance statement requirement does not replace the usual requirement to maintain business records. The person who creates the allowance statement must be able to evidence the amount of qualifying expenditure included on the allowance statement.

If the creator of the allowance statement is the person who constructs the building, they must retain evidence of construction expenditure, such as invoices. They will also need to retain relevant documents to support the date of earliest construction contract.

If the creator of the allowance statement has obtained an unused building from someone else, they will need to evidence the method of calculating qualifying expenditure for the allowance statement. This may include the sale and purchase agreement if buying from a developer and a valuation of the land and other excluded items to arrive at a just and reasonable apportionment.

If the creator of the allowance statement is unable to evidence the expenditure on which the SBA claim is based, their qualifying expenditure is taken to be nil.

For subsequent holders of the relevant interest who have acquired a used building, they must obtain a copy of the allowance statement from a previous owner.  If no allowance statement is held, the qualifying expenditure is nil.