1402.This section is based on part of section 110 of CAA 1990. It applies if a part of the undeveloped market value of land is attributable to buildings or structures that permanently cease to be used. If the conditions in the section are satisfied some or all of that part of the undeveloped market value is treated as qualifying expenditure.
Example
Assume that in the example in paragraph 1398 above:
£50 of the £200 (that the land would be worth without the mineral deposits) is attributable to a building on the land;
B gets no capital allowances in relation to that building; and
the building becomes permanently disused by reason of B demolishing it.
This section allows the £50 to be qualifying expenditure.