Part 3Industrial buildings allowances

Chapter 4Qualifying expenditure

Part of expenditure within time limit for qualifying enterprise zone expenditure

304Application of section 303 where developer involved

1

This section applies if section 303 applies but—

a

the expenditure on the construction of the building was incurred by a developer, and

b

the relevant interest in the building has been sold by the developer in the course of the development trade;

and in this section Z, N, E and T have the same meaning as in section 303.

2

If the sale by the developer is the relevant sale—

Z=C×ETmath

and

N=L-L×ETmath

where—

  • C is the capital sum paid for the relevant interest by the purchaser, and

  • L is the lesser of—

    1. a

      the capital sum paid for the relevant interest on the relevant sale, and

    2. b

      the expenditure incurred on the construction of the building.

3

If the sale by the developer is not the relevant sale—

Z=D×ETmath

and

N=D-Zmath

where D is the lesser of—

  1. a

    the price paid for the relevant interest on its sale by the developer, and

  2. b

    the capital sum paid for the relevant interest on the relevant sale.