C2Part 4 Agricultural buildings allowances
Chapter 3 Qualifying expenditure
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.
Pt. 4 restricted (19.7.2007) by Finance Act 2007 (c. 11), s. 36(4)-(7)