SBA will be available to businesses which are carrying on a qualifying activity and will be available at a rate of 3% per annum on a straight-line basis, over a fixed 33 & 1/3 -year period, starting from when the structure or building comes into qualifying use.
 
Unlike capital allowances on plant and machinery, there will not be a system of balancing charges or balancing allowances on a disposal of the asset. Instead, the purchaser will continue to claim the annual allowances of 3% of the original cost. In order to transfer the benefit of allowances, businesses will need to keep records of the expenditure incurred on the works and expenditure attributable to the land.

If relief is not claimed, it will not be able to be carried forward to a later period and will be lost. There will be notional allowances for businesses that are not within the charge to UK tax.

SBA will be available for capital expenditure on structures and buildings brought into use for a qualifying activity. This includes a UK or overseas property business that is an ordinary business for the purposes of the Capital Allowances Act 2001. Where an asset is constructed for a qualifying activity that has not yet commenced, expenditure will not qualify if incurred more than seven years before that qualifying activity commences.

Expenditure on residential property and other buildings that function as dwellings will not qualify for SBA. In this case, “dwellings” are buildings intended or used for long-term residence, including university or school accommodation. Hotels and care homes will qualify for SBA. For properties where there is mixed use, the relief will be reduced by apportionment, but SBA will not be available where 10% or less of the costs incurred would meet the conditions for the relief. The definition of “dwelling” for the purposes of the relief is to be consulted on.