C1F1Part 4A FLAT CONVERSION ALLOWANCES
Pt. 4A modified (24.2.2003) by Proceeds of Crime Act 2002 (c. 29), s. 458(1), Sch. 10 para. 22 (with Sch. 10 para. 25); S.I. 2003/120, art. 2, Sch. (with arts. 34) (as amended (20.2.2003) by S.I. 2003/333, art. 14)
Chapter 2 QUALIFYING EXPENDITURE
393B Meaning of “qualifying expenditure”
1
In this Part “ qualifying expenditure ” means capital expenditure incurred on, or in connection with—
a
the conversion of part of a qualifying building into a qualifying flat,
b
the renovation of a flat in a qualifying building if the flat is, or will be, a qualifying flat, or
c
repairs to a qualifying building, to the extent that the repairs are incidental to expenditure within paragraph (a) or (b).
2
Expenditure within subsection (1)(a) or (b) is not qualifying expenditure unless the part of the building, or the flat, in respect of which the expenditure is incurred—
a
was unused, or
b
was used only for storage,
throughout the period of one year ending immediately before the date on which the conversion or renovation work began.
3
Expenditure is not qualifying expenditure if it is incurred on or in connection with—
a
the acquisition of land or rights in or over land,
b
the extension of a qualifying building (except to the extent required for the purpose of providing a means of getting to or from a qualifying flat),
c
the development of land adjoining or adjacent to a qualifying building, or
d
the provision of furnishings or chattels.
4
For the purposes of this section, expenditure incurred on repairs to a building is to be treated as capital expenditure if it is not expenditure that would be allowed to be deducted in calculating the profits of a Schedule A business for tax purposes.
5
Treasury regulations may make further provision as to expenditure which is, or is not, qualifying expenditure.
Pt. 4A (ss. 393A-393W) inserted (with effect as mentioned in s. 67 of the amending Act) by Finance Act 2001 (c. 9), s. 67, Sch. 19 Pt. 1