Chapter 1: Introduction
Overview
947.This Chapter introduces industrial buildings allowances.
948.Section 271 sets out the basic requirements for industrial buildings allowances and who gets them. It defines “industrial building”.
949.Section 272 identifies some expenditure which is regarded as expenditure on the construction of a building and some which is not.
950.Section 273 provides for some expenditure on preparation of a site for plant or machinery to be treated as expenditure on the construction of a building.
Section 271: Industrial buildings allowances
951.This section is based mainly on parts of sections 1, 3, 6, 7, 10, 10A, 10B and 14 of CAA 1990. It sets out the basic requirements for industrial buildings allowances.
952.Subsection (1) identifies four types of building which can be classified as an industrial building or structure. This allows subsection (2) to define “industrial building”. It also provides that in Part 3 “building” is short for “building or structure”.
Section 272: Expenditure on the construction of a building
953.This section is based on sections 21(1) and 12 of CAA 1990. It provides that construction expenditure:
excludes any expenditure on land or rights to land; and
includes expenditure on repairs to a part of the building if not relieved as a revenue deduction.
Section 273: Preparation of sites for plant or machinery
954.This section is based on section 13 of CAA 1990. Its effect is to give industrial buildings allowances for certain expenditure on preparing land for plant or machinery.
955.Subsection (2)(a) is not in section 13 of CAA 1990. But it helps to make clear the effect of the legislation. See Note 44 in Annex 2.