CA90700 | Structures and buildings allowance (SBA): relevant interest: capital expenditure incurred by lessee

Regardless of whether a lessor or lessee is entitled to claim the SBA on the original construction costs, there may be situations when a tenant incurs qualifying capital expenditure, such as capital fitting out works.

This additional expenditure may entitle the lessee to SBA because the relevant interest in the building to which the person incurring the expenditure (the lessee) is entitled to is the lease CA90510.

A separate record of this expenditure must be kept, as the 33 1/3 year period CA90100 for which SBA can be claimed is likely to be different to that of the qualifying expenditure for construction of the building.

When the lease terminates, and is not treated as continuing by CAA01/S270IG, the entitlement to SBA on this subsequent capital expenditure ceases CA90800.