Section 370: Purchase of relevant interest before first use of agricultural building
1276.This section is based mainly on parts of sections 123 and 127 of CAA 1990. It deals with expenditure which would have been qualifying expenditure but for a sale of the relevant interest before the building was first used. The qualifying expenditure is then broadly the lesser of:
the capital expenditure which would have been the qualifying expenditure for the person who incurred it; and
the expenditure paid by the buyer in respect of the building.
1277.There is a minor change in subsection (1). It gives the buyer qualifying expenditure only if a capital sum is paid for the relevant interest. CAA 1990 does not require the sum to be capital. See Change 43 in Annex 1.
1278.Subsection (3) provides that:
expenditure which is excluded from qualifying expenditure by section 369(3) to (5) is also excluded for the purpose of this section; and
a just and reasonable apportionment must be made of the purchase price as between the building and other things (for example land). There is a minor change. It is the use of “just and reasonable apportionment” whereas CAA 1990 uses “just apportionment”. See Change 40 in Annex 1.
