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What is Structures and buildings allowance?
Last verified 31 October 2026
The structures and buildings allowance is a capital allowance for the cost of building or buying a non-residential structure. It is given at 3% a year over 33 and a third years, so the cost is relieved gradually.
Why it matters to landlords
It matters to landlords only if they let commercial property. GOV.UK says you cannot claim on the cost of any residence, or any structure in the grounds of a residence, and that residential and furnished holiday lettings are not qualifying activities. The allowance also needs every construction contract to be dated on or after 29 October 2018.
The first person to use the structure must prepare a written allowance statement before claiming, covering the structure's address and description, the date of the earliest written construction contract, the qualifying costs and the date non-residential use began. If you buy a used structure, you need a copy of that statement from the previous owner. Land and landscaping costs are not eligible.
Example
Elena has a new workshop unit built and let to a business tenant, with a contract signed in 2026. Qualifying construction cost is £150,000, not counting the land. She can claim 3% a year, which is £4,500, for 33 and a third years. If she had built a flat to rent out instead, nothing would be claimable.
Allowable Expenses for Landlords (2026) →