Capital Allowances Act 2001

370 Purchase of relevant interest before first use of agricultural building

(1) This section applies if—

(a) capital expenditure has been incurred on the construction of an agricultural building,

(b) the expenditure was incurred for the purposes of husbandry as mentioned in section 361,

(c) the relevant interest is sold before the building is first used, and

(d) a capital sum is paid by the purchaser for the relevant interest.

(2) The lesser of—

(a) the capital expenditure incurred on the construction of the agricultural building, and

(b) the capital sum paid by the purchaser,

is qualifying expenditure.

(3) For the purposes of subsections (1) and (2)—

(a) capital expenditure incurred on the construction of the agricultural building does not include any amount excluded from being taken into account under section 369(3) to (5), and

(b) the capital sum paid by the purchaser for the relevant interest does not include any amount which, on a just and reasonable apportionment, is attributable to assets representing expenditure in respect of which an allowance cannot be made under this Part.

(4) Subsection (3)(b) does not affect sections 562, 563 and 564(1) (apportionment and procedure for determining apportionment).

(5) The qualifying expenditure is to be treated as incurred when the capital sum became payable.

(6) If the relevant interest is sold more than once before the building is first used, subsection (2) has effect only in relation to the last of those sales.