User Roles AdminStaff contributor ✗External contributor ✗Pulse user 

Use the Structures and buildings allowance (SBA) template to claim capital allowances on qualifying expenditure on non-residential structures and buildings under Part 2A of the Capital Allowances Act 2001 (CAA 2001). The template calculates the writing-down allowance for each qualifying asset, tracks the tax written-down value from year to year, handles disposals, and feeds the allowance into the capital allowances and tax computation.

Table of contents 

When should I use this template?

Use this template where the company has incurred qualifying capital expenditure on the construction, renovation or acquisition of a non-residential structure or building, and the structure or building has been brought into qualifying use.

SBA is claimed on a straight-line basis over the life of the asset. It is not part of the main or special rate pool and is not eligible for the Annual Investment Allowance, so it is tracked separately in this dedicated template.

Before you start

Make sure the UK Corporation Tax workflow has been added to the file and that a business type has been selected in the Business type section of the Return information template. If no business type is selected, the template shows a warning and cannot calculate the allowance. For help with this step, see How do I choose the correct business type for UK Corporation Tax?

The SBA template does not take direct input of new expenditure. Qualifying additions are pulled in from the Total fixed asset additions template, so complete that template first and mark the relevant additions with the Structures and buildings allowance tax treatment.

Silverfin takes the SBA writing-down rate from the Rates and allowances template, so no rate needs to be entered manually.

Background: how SBA works

SBA was introduced for qualifying expenditure incurred on or after 29 October 2018. The allowance is given on the original qualifying cost on a straight-line basis, so the annual allowance is a flat percentage of cost rather than a reducing-balance calculation.

The rate has changed over time: 2% per year for periods before 1 April 2020 (relieving the cost over 50 years); and 3% per year from 1 April 2020 (relieving the cost over 33⅓ years).

For an accounting period that straddles 1 April 2020, the allowance is apportioned on a daily basis — 2% for days before the change and 3% for days on or after it. Silverfin performs this straddling calculation automatically using the rates held in Rates and allowances.

The allowance for each asset is calculated as Cost × writing-down rate × (qualifying days in the period ÷ days in the accounting period). Where the asset is brought into qualifying use part-way through the period, the allowance is time-apportioned for the number of qualifying days, and it is capped so that it cannot exceed the residual value carried forward.

Step 1: Add qualifying expenditure in Total fixed asset additions

In the Total fixed asset additions template, add the qualifying expenditure and set its tax treatment to Structures and buildings allowance. Assign it to the correct business type (for example, trading or property). This is what tells Silverfin to pull the item into the SBA template.

Step 2: Review the assets pulled into the SBA template

Open the Structures and buildings allowance (SBA) template. Assets tagged with the SBA tax treatment in Total fixed asset additions appear automatically. An on-screen note confirms that the values are pulled from Total fixed asset additions.

Where the company has more than one business type, the template shows a separate table for each (for example, a trading table and a property table).

Step 3: Complete the dates and cost for each asset

For each asset, complete the date and cost information, which drives the calculation:

  • Date expenditure incurred / treated as incurred
  • Contract entered into
  • Brought into use – SBA can only be claimed from the date the structure or building is brought into qualifying use.
  • Cost – the qualifying expenditure on which the allowance is based.

Silverfin also tracks the TWDV b/f (tax written-down value brought forward) and Additions columns so the residual value is carried correctly from year to year.

Step 4: Review the allowance calculation

For each asset, Silverfin calculates the SBA for the period using cost, the applicable rate (straddling the 1 April 2020 change where relevant), and the number of qualifying days. The result is shown alongside the TWDV c/f.

If, in a given period, the full allowance is not claimed, the SBA not claimed column records the notional writing-down allowance. This matters because SBA is a straight-line allowance on cost: the residue is still reduced by the notional amount even where the allowance is not taken.

The Capital item expensed column reconciles the SBA-related amounts back to the profit and loss / OCI analysis, and Silverfin flags any difference so the schedule agrees to the accounts.

Step 5: Handle disposals and adjustments

Enter a Disposal date for any asset disposed of in the period. On disposal, Silverfin removes the residual value through the Removed on disposal column so that no further allowance is given.

Two further columns allow manual adjustments where needed: Other – Non-tax adjusting (a movement in the value that does not change the tax position) and Other – Tax adjusting (a movement that does change the tax position).

What flows through to the rest of Corporation Tax?

The SBA claimed for the period flows into the capital allowances included in the tax computation and reduces the taxable profit of the relevant business type. The template also generates the iXBRL tags for the SBA figures (written-down value brought/carried forward, expenditure incurred, writing-down allowances and notional allowances) for the Corporation Tax computation export.

What rolls forward next year?

For each asset that has not been disposed of and still has a tax written-down value, the closing position rolls forward: the TWDV c/f becomes next year's TWDV b/f, and the dates, description and cost carry forward so the straight-line allowance continues on the same basis. Assets that have been disposed of, or whose value has been fully relieved, do not roll forward.

Frequently asked questions

Why is my SBA template empty?

The template only shows assets that have been added in Total fixed asset additions with the Structures and buildings allowance tax treatment. Add the expenditure there first and assign it to the correct business type.

Why can I not claim any allowance on an asset?

SBA can only be claimed once the structure or building has been brought into qualifying use. If the brought-into-use date is after the period end (or is blank), no allowance is given for the period.

Which rate does Silverfin use?

2% before 1 April 2020 and 3% from 1 April 2020, taken from the Rates and allowances template. For a period straddling 1 April 2020, the rate is apportioned on a daily basis automatically.

What is the "SBA not claimed" column for?

Because SBA is a straight-line allowance on original cost, the available residue reduces by the notional allowance even where the allowance is not actually claimed. This column records that notional amount.

Do I enter new expenditure directly in this template?

No. Qualifying expenditure is entered in Total fixed asset additions and pulled into the SBA template automatically.