Q. My client is a subsidiary company that has made capital improvements to a commercial building they hold on a short lease (six years) from the holding company of the group. I know I can get capital allowances for plant and machinery. Structures and buildings allowance (SBA) should be available on the capital improvement of the building, what do I need to do to claim them? What happens when the lease expires?

A. Structures and buildings allowance (SBA) are likely available on the structural improvements to the building itself, and the subsidiary would be able to claim SBAs for the duration of the lease as it has incurred the expenditure on the capital improvement of the building.