F1Part 3ABusiness Premises Renovation Allowances

Chapter 6WRITING-DOWN ALLOWANCES

360IEntitlement to writing-down allowances

(1)

A person is entitled to a writing-down allowance for a chargeable period if he has incurred qualifying expenditure in respect of a qualifying building and, at the end of the chargeable period—

(a)

the person is entitled to the relevant interest in the qualifying building,

(b)

the person has not granted a long lease of the qualifying building out of the relevant interest in consideration of the payment of a capital sum, and

(c)

the qualifying building constitutes qualifying business premises.

(2)

In subsection (1)(b) “ long lease ” means a lease the duration of which exceeds 50 years.

(3)

Whether the duration of a lease exceeds 50 years is to be determined—

(a)

in accordance with section 303 of ITTOIA 2005, and

(b)

without regard to section 360Z3(3) of this Act (new lease granted as a result of the exercise of an option treated as continuation of old lease).

(4)

A person claiming a writing-down allowance may require the allowance to be reduced to a specified amount.