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Capital Allowances Act 2001

Overview

930.This Part provides for industrial buildings allowances. These may be writing-down allowances or balancing allowances – or, exceptionally, initial allowances. It also provides for balancing charges. Allowances are, broadly, available if there is qualifying expenditure on a building which is an industrial building. The main type of industrial building is one in use for manufacturing or processing. Only persons with the relevant interest in the building can claim allowances on qualifying expenditure.

931.Chapter 1 deals with the basic requirements for allowances. It defines “industrial building”. “Building” is short for “building or structure”.

932.Chapter 2 deals with what is and is not an industrial building. The main kind of industrial building is one in use for the purposes of a qualifying trade.

933.Chapter 3 defines the “relevant interest” in relation to the construction expenditure on the building.

934.Chapter 4 defines “qualifying expenditure” and “qualifying enterprise zone expenditure”.

935.Chapter 5 contains the conditions for initial allowances. They are available at a rate of 100% to persons who incur qualifying enterprise zone expenditure and meet certain conditions.

936.Chapter 6 contains the conditions for writing-down allowances.

937.Chapter 7 provides for balancing allowances and balancing charges following a balancing event.

938.Chapter 8 sets out how and when qualifying expenditure is written-off.

939.Chapter 9 contains special rules for highway undertakings and highway concessions.

940.Chapter 10 contains special provisions relating to additional VAT liabilities and rebates under the VAT capital goods scheme.

941.Chapter 11 provides for allowances and charges to be given effect.

942.Chapter 12 makes supplementary provisions.

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