Revenue Note for Guidance
Increased rates of writing down allowances are available in respect of capital expenditure incurred on certain industrial buildings or structures. The qualifying expenditure is capital expenditure on a new installation which includes capital expenditure on the construction of a new building or structure which is to be an industrial building or structure occupied for the purpose of a relevant trade. The mechanism for granting the increased allowances is for the wear and tear allowances to be made under section 271 to be increased to 100%. Furthermore, an additional allowance of 50% of the qualifying expenditure relating to the qualifying building or structure is also available.
Where expenditure incurred on the new installation includes capital expenditure on new buildings or structures occupied for the purpose of a relevant trade, then increased rates of wear and tear allowances will apply to such expenditure. The industrial buildings allowances to be made under section 271 are increased to 100% plus an additional allowance of 50% is allowed.
Relevant Date: Finance Act 2021