Tax relief · England, Wales, Scotland, Northern Ireland
Structures and Buildings Allowance (SBA)
Tax relief on the cost of building or renovating non-residential buildings and structures used in your business, such as farm sheds or let commercial units.
- From
- HMRC
- How much
- 3% of the building cost a year, for 33⅓ years.
- Who can apply
- Businesses paying UK tax on a trade or a non-residential property business, where the construction contract was signed on or after 29 October 2018.
What you’ll need
- Construction contracts and costs
- A written allowance statement (address, contract date, costs, date use began)
How to apply
- Write the allowance statement if you are the first user
- Claim each year on your tax return
Houses, holiday lets, land, and costs covered by a grant don't count. gov.uk doesn't mention farm buildings by name, but any trade qualifies; check with your accountant.
Similar schemes
- Growth Guarantee Scheme (government-backed business lending) OpenBritish Business Bank, through accredited lendersThe government guarantees part of a loan, overdraft, asset finance or invoice finance from an accredited lender, which can help a farm business borrow when it might not otherwise get finance.
- Scottish Broadband Voucher Scheme OpenScottish Government (R100 programme) · Closes 20 November 2026A voucher towards getting a faster broadband connection installed at a home or business with slow broadband and no faster connection planned.
- Sustainable Agriculture Loan Scheme OpenDevelopment Bank of Wales, for the Welsh GovernmentLow-interest loans for on-farm renewable energy, energy efficiency and storage, slurry and nutrient management, and farm infrastructure and equipment.
- Workplace Charging Scheme (EV chargepoints) OpenOffice for Zero Emission Vehicles (OZEV), run by DVLA · Closes 31 March 2027A voucher towards buying and fitting electric vehicle chargepoints for staff or farm fleet vehicles. You get a voucher code and give it to an authorised installer, who claims the money.
- 40% first-year allowance Open all yearHMRCDeduct 40% of the cost of new main-rate plant and machinery from profits in the first year, with the rest claimed over later years.
- Annual Investment Allowance (AIA) Open all yearHMRCDeduct the full cost of most machinery and equipment (tractors, kit, many fixtures) from your profits in the year you buy it, so you pay less tax.
Checked against the official pages on 29 October 2026. Sources: 1. Always read the official page before you apply.