Capital Allowances Act 2001

1992-93 qualifying expenditure

77 (1) “1992-93 qualifying expenditure” means expenditure which is—

(a) qualifying expenditure which is within section 294 and is 1992-93 construction expenditure, or

(b) the 1992-93 element of qualifying expenditure which is within section 295 or 296.

(2) Qualifying enterprise zone expenditure is not to be taken into account as 1992-93 qualifying expenditure for the purposes of sub-paragraph (1).

(3) Expenditure is 1992-93 construction expenditure if it was incurred on the construction of a building under a contract which was entered into—

(a) in the period beginning with 1st November 1992 and ending with 31st October 1993, or

(b) for the purpose of securing compliance with obligations under a contract entered into in that period,

and which was not entered into for the purpose of securing compliance with obligations under a contract entered into before 1st November 1992.

(4) The 1992-93 element of qualifying expenditure within section 295 or 296 is—

where—

• QE is the amount of qualifying expenditure,

• E is the amount of 1992-93 construction expenditure, and

• T is the amount of expenditure on the construction of the building.

(5) If the expenditure on the construction of the building was incurred by a person carrying on a trade as a developer who—

(a) was entitled to the relevant interest in the building before 1st November 1992, and

(b) sold that interest in the course of that trade under a contract entered into in the period beginning with 1st November 1992 and ending with 31st October 1993,

the 1992-93 construction expenditure for the purposes of sub-paragraph (4) includes any expenditure on the construction of the building incurred under a contract entered into before 1st November 1993 or for the purpose of securing compliance with obligations under such a contract.