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ACCA Applied Skills · Taxation (UK) · Property and investment income

Nadia constructed a commercial building to let to a tenant. The land was bought separately. The building cost £300,000 to construct, all of which qualifies for the structures and buildings allowance, and it was brought into qualifying use on 1 October 2025. Nadia has a 5 April year end for her property business as an individual. What structures and buildings allowance can she claim for 2025/26?

The structures and buildings allowance is 3% straight-line on £300,000, giving £9,000 a year. The building was in qualifying use for six months of 2025/26, so the claim is time-apportioned to £4,500. Claiming the full £9,000 would ignore the part-year of use.

  1. A£9,000
  2. B£4,500Correct
  3. C£5,250
  4. D£3,000

Explanation

The allowance is 3% straight-line: £300,000 x 3% = £9,000 per full year. It is time-apportioned for the period in use: 6 months (1 October 2025 to 5 April 2026) so £9,000 x 6/12 = £4,500. £9,000 ignores the apportionment.

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