As indicated at B3.271, a person ceases to be entitled to the structures and buildings allowance (SBA) if the relevant interest in the building or structure is disposed of or if the building or structure is demolished. Unlike the other allowance codes, however, there are no balancing adjustments under the SBA code. Instead, special capital gains rules apply.
An SBA is not treated as a capital allowance for the purposes of TCGA 1992, s 41 (restriction of losses by reference to capital allowances; see C2.217), so that that section does not apply in respect of an SBA1. However, TCGA 1992, s 39 (exclusion of expenditure by reference to tax on income; see C2.215) does not apply to exclude expenditure in respect of which an SBA is made from the sums allowable as a deduction in computing a chargeable gain2.
An adjustment is made for capital gains purposes where a person disposes of an interest in a building or structure which is either an interest
Web page updated on 17 Mar 2025 17:09
