Structures and buildings allowance (UK)
For 2025–26, structures and buildings allowance is generally 3% a year of qualifying expenditure on an eligible structure used for a qualifying activity. The allowance begins no earlier than first qualifying use and the expenditure being incurred; periods of use and statutory conditions affect the amount. Land costs and residential use do not automatically qualify.
Worked example
A company incurs £200,000 qualifying building expenditure and uses the building for an eligible activity throughout a 12-month period. Assuming all conditions are met, the allowance is £200,000 × 3% = £6,000.
Common mistake
Applying 3% to the land cost or claiming a full-year allowance where qualifying use starts part way through the period.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | TX (UK) | Direct | June 2026–June 2027 |