CA91010 | Structures and buildings allowance (SBA): allowances: who can claim the allowance

CAA01/S270HA-HI

Allowances are given to the holder of the relevant interest CA90510.

When a building is sold or transferred to another person, the SBA for the seller ceases. SBA for the purchaser will continue to be calculated by reference to the original qualifying expenditure on the building. The new owner therefore can claim the SBA for the remainder of the 33 1/3 year period in which there is qualifying use, at the same annual amount as the original and subsequent owners.

If a qualifying building is brought into residential use, is destroyed or is demolished, a person ceases to be entitled to an allowance. The allowance for the chargeable period in which the date of change in use or demolition occurs is proportionately reduced.

If, for any chargeable period, the SBA is not claimed, it is lost and cannot be claimed in any other chargeable period.

Giving effect to allowances

The allowance is in the form of a deduction in calculating the profits of the qualifying activity for which the building used CAA01/S270HA-HI.