Capital Allowances Act 2001 (c. 2)

Part 3 Industrial buildings allowances

Chapter 4 Qualifying expenditure

Part of expenditure within time limit for qualifying enterprise zone expenditure

304 Application 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—

and

where—

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

• L is the lesser of—

  (a)

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

  (b)

  the expenditure incurred on the construction of the building.

(3) If the sale by the developer is not the relevant sale—

and

N = D - Z

where D is the lesser of—

(a)

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

(b)

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