282 Supplementary provisions (Chapter 1)

(1) Capital expenditure may be incurred on the construction of an industrial building or structure before a start is actually made on the construction of the building (for example, a trader may pay an instalment of the cost of construction before any building operations have commenced). In such a case, the person incurring the expenditure is deemed to have, at the time the expenditure is incurred, the same interest in the future building or structure as that person would have had if the building or structure had been finished at that time. This ensures that for capital allowance purposes a person has a relevant interest in a building or structure when the expenditure is incurred despite the fact that there is no building or structure in existence at that time.

(2) In the computation of a balancing allowance or charge in respect of an industrial building or structure, there is to be left out of account any part of the sale price or insurance money, etc, attributable to assets which have not qualified for capital allowances as part of the expenditure on construction (for example, site cost).

Relevant Date: Finance Act 2021