Structure and Building Allowance

You may be able to claim the structures and buildings allowance tax relief each year on certain money you spend. This allowance may last the whole of the allowance period.

You must have paid some or all the costs towards the structure's purchase, construction or renovation.

All construction contracts must have been signed on or after 29 October 2018 and the structure must:

  • Not have been used as a residence the first time it was used or during the period you’re claiming for
  • Be used for a qualifying activity
  • Have an allowance statement

Structure and Building Allowance - Training and Support

What you can claim the allowance on

If you paid over the market value for a structure or its construction costs, you’ll only be able to claim for the original market value.

You can only claim on construction costs, which include:

• Fees for design
• Preparing the site for construction
• Construction works
• Renovation, repair and conversion costs
• Fitting out works

How to claim

Claim capital allowances on your:

Self-Assessment tax return if you’re a sole trader
• partnership tax return if you’re a partnership
• Company Tax Return if you’re a limited company - you must include a separate capital allowances calculation

Employees must claim in a different way.

If you used writing down allowances, you’ll need to work out how much you can claim based on the pool your item is in.

The amount you can claim is deducted from your profits.