CA94010 | Structures and buildings allowance (SBA): excluded expenditure: land

CAA01/S270BG, S270BL(1)

Acquisition of land and rights over land

Expenditure incurred on the acquisition of an interest in land does not qualify for SBA nor does expenditure incurred on the acquisition of rights in, or over, land.

If a person buys land and builds a building on it, the cost of the land does not qualify for SBA. If a person buys a building, the part of the cost that relates to the land on which the building stands does not qualify for SBA, and a just and reasonable apportionment, based on actual invoiced amounts, must be made CA93550.

Expenditure incurred on the acquisition of land includes the following, inasmuch as they are attributable to land (and not the relevant building):

• fees

• stamp duty land tax, land and buildings transaction tax or land transaction tax

• other incidental costs attributable to the acquisition.

Altering land

Costs incurred on the alteration of land, other than site preparation costs CA93250, are also excluded.

Expenditure incurred on the alteration of land includes the following activities:

• land reclamation

• contaminated land remediation, including any preparatory activities, within CTA09/S1146 CIRD61500

• derelict land remediation, including any preparatory activities, within CTA09/S1146A CIRD62035

• landscaping costs (other than so as to create a structure).