| Overview |
BrightTax now supports the Structures and Buildings Allowance (SBA) pool in the Corporation Tax Capital Allowances calculator. Companies can claim SBA on qualifying expenditure incurred on the construction, renovation, or conversion of commercial buildings and structures used in their trade.
| How to Claim SBA in BrightTax Corporation Tax |
- Open the Corporation Tax return in BrightTax and switch to Edit mode.
- Click the Capital Allowances button in the top toolbar to open the Capital Allowances calculator.
- Select the SBA pool from the list of available pool types.
- Click Add Asset.
- Enter the qualifying expenditure — the original cost of construction, renovation, or conversion.
- Enter the date the building was first brought into use for the company's trade.
- BrightTax calculates the annual SBA at 3% and time-apportions it for accounting periods shorter or longer than 12 months.
- The SBA figure flows automatically into the CT computation.
- Save and run Check and Generate iXBRL to confirm the SBA is correctly reflected in the CT600.
| ✔ Tip: For accounting periods straddling 1 April 2024, check whether any Enterprise Zone capital allowances previously entered need to be reviewed — EZ allowances were removed from BrightTax CT600 for periods starting on or after 1 April 2024. |
| SBA Rules for Companies |
| Rule | Detail |
| Annual rate | 3% per year on qualifying expenditure |
| Eligible expenditure | Construction, renovation, conversion of commercial buildings |
| Excluded | Residential property, land, plant and machinery |
| Accounting period | Time-apportioned for periods other than 12 months |
| Disposal | No balancing allowance — SBA reduces cost base for indexation/SORP purposes |
| Second-hand purchase | Allowance passes from vendor — written statement required confirming original cost and SBA claimed |
| Frequently Asked Questions |
Q: Can a company claim both AIA and SBA on the same building?
A: No. Structures and buildings are specifically excluded from the Annual Investment Allowance. SBA is the appropriate allowance for commercial building expenditure.
Q: Does SBA appear on the CT600?
A: Yes. The SBA figure from the Capital Allowances calculator is included in the capital allowances total on the CT600 and flows through to the CT computation automatically.
Q: Can I claim SBA on a building purchased from another company?
A: Yes, if the previous owner incurred qualifying expenditure on or after 29 October 2018. You will need a written statement from the vendor confirming the original qualifying cost and the total SBA claimed to date.
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