Capital Allowances Act 2001

Capital Allowances Act 2001

2001 CHAPTER 2

Commentary on Sections

Glossary

Part 3: Industrial buildings allowances

Chapter 9: Highway undertakings

Section 342: The relevant interest

1155. This section is based on sections 4(2AB) and 20(5) and (6) of CAA 1990. It sets out how the concept of “the relevant interest” in the building in Chapter 3 is to be applied in the case of a highway concession.

1156. Subsection (1) gives the general rule that a highway concession is not regarded as an interest in a road on which construction expenditure has been incurred.

1157. Subsection (2) provides an exception to subsection (1). If:

• expenditure has been incurred on the construction of a road by a person; and

• at that time that person holds no interest in the road but instead was entitled to a highway concession over it;

then that highway concession can be treated as the relevant interest in relation to that construction expenditure.

1158. Subsection (3) refers to section 344. That section is concerned with a new or renewed concession being treated as an extension of the previous or original concession. This is also to be applied when determining the relevant interest.