CA92100 | Structures and buildings allowance (SBA): use: qualifying use

CAA01/S270AA(2)(a)(ii) & (b)(i), s270CE(1),(2)

The SBA is only available to a person after that person has first brought the building into ‘qualifying use’ CA90100. Qualifying use is defined as ‘non-residential use’ for the purpose of a qualifying activity.

For a building to be in qualifying use, the following three conditions must be satisfied:

1. the building must be used for the purposes of a qualifying activity CA90400

2. the person carrying on the activity must hold the relevant interest in the building CA90510

3. the building must not be in residential use CA92500.

But, a building is not in qualifying use for the purposes of a qualifying activity if the extent to which it is used for that qualifying activity is ‘insignificant’ CA92200.

Nominal use of a building will not enable it to qualify for the SBA. Whether or not a building is used to a significant extent should be determined on a reasonable basis taking into consideration the relevant facts and circumstances. For example, a building in non-residential use by a seasonal business such as a theme park, which is not open all year, is unlikely to be in insignificant use only because of the limited number of months that it is open each year.

Once a building has been brought into qualifying use by a person, that person may be entitled to the SBA for each day they hold the relevant interest CA90510, and for which the building is not in residential use CA92500.