Capital Allowances Act 2001

[F1 Expenditure treated as expenditure on construction U.K.

Textual Amendments

F1 Pt. 2A inserted (5.7.2019) by The Capital Allowances (Structures and Buildings Allowances) Regulations 2019 (S.I. 2019/1087), regs. 1, 2

270BJ Expenditure on renovation, conversion or incidental repairs U.K.

(1) This Part has effect in relation to expenditure incurred by a person—

(a) on the renovation or conversion of a part of a building or structure, or

(b) on repairs to a part of a building or structure that are incidental to the renovation or conversion of that part,

as if it were expenditure on the construction of that part of the building or structure for the first time.

(2) For the purposes of subsection (1), sections 270AA(1)(a) and 270AB have effect, in relation to a building or structure that has been brought into use before 29 October 2018, as if the renovation or conversion of, or repairs to, part of the building or structure were the construction of that part for the first time.

[F2 (2A) For the purposes of subsection (1), in relation to a building or structure that has been brought into use at a time when the area in which the building or structure is situated was not a [F3 special tax site], section 270BNA(2) and (7) have effect as if the renovation or conversion of, or repairs to, part of the building or structure were the construction of that part for the first time.]

(3) For the purposes of subsection (1), expenditure incurred as mentioned in subsection (1)(a) or (b) for the purposes of a qualifying activity is to be treated as capital expenditure if it is not expenditure that may be allowed to be deducted in calculating the profits of the qualifying activity for tax purposes.

Textual Amendments

F2 S. 270BJ(2A) inserted (10.6.2021) by Finance Act 2021 (c. 26), Sch. 22 para. 8

F3 Words in s. 270BJ(2A) substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 23 para. 14(a)

270BK Preparation of sites U.K.

(1) This section applies if a person incurs capital expenditure, other than expenditure on altering land (within the meaning of section 270BG(4)), for the purposes of preparing land as a site for the construction of a building or structure.

(2) This Part has effect in relation to the expenditure as if it were capital expenditure on the construction of the building or structure.

(3) For that purpose, sections 270AA(1)(a)[F4 , 270AB and 270BNA(2) and (7)] have effect as if the preparation of the land mentioned in subsection (1) were the construction of the building or structure.]

Textual Amendments

F4 Words in s. 270BK(3) substituted (10.6.2021) by Finance Act 2021 (c. 26), Sch. 22 para. 9