A person carrying on a qualifying activity, who has a relevant interest in a building that is in qualifying use, may claim structures and buildings allowances (SBAs) in respect of qualifying expenditure incurred after 28 October 2018 on the construction, renovation or acquisition of the building.

The position with regard to leases is not considered here. Broadly, a person holding a leasehold interest in a building may claim SBAs where certain conditions are met, including that the lease is for 35 years or more.

What is a ‘qualifying activity’?

Qualifying activities include the following to the extent that the profits or gains are or would be chargeable to UK tax:

• a trade, profession or vocation;