http://www.legislation.gov.uk/ukpga/2001/2/part/2A/chapter/5Capital Allowances Act 2001An Act to restate, with minor changes, certain enactments relating to capital allowances.2001-04-05texttext/xmlenStatute Law Database2026-05-01Expert Participation2026-05-01 Capital Allowances Act 2001s. 774E(5)(b)Finance Act 2008Sch. 20 para. 12(11)Capital Allowances Act 2001s. 29(1A)The Fire and Rescue Services (Northern Ireland) Order 2006Sch. 3 para. 24(b)art. 1(3)art. 2Capital Allowances Act 2001s. 436(2)(aa)Planning (Consequential Provisions) (Wales) Act 2026Deddf Cynllunio (Darpariaethau Canlyniadol) (Cymru) 2026Sch. 2 para. 329(b)Sch. 5 Pt. 1s. 5(2) PART 2ACHAPTER 5270EA1This section applies if a person is entitled to an allowance under section 270AA(2) for a chargeable period.2If the chargeable period is more or less than one year, the allowance is proportionately increased or reduced.3If—athe conditions in section 270AA(2)(a) and (b)(i) are met on some, but not all, days during the chargeable period, aathe period mentioned in section 270AA(2)(b)(ii) expires part way through the chargeable period, orbentitlement to the allowance ceases under section 270AA(4) on any day during the chargeable period,the allowance is proportionately reduced.270EB1This section applies if—aa person is entitled to an allowance under section 270AA(2) by reference to a building or structure for a chargeable period, andbthe building or structure is put to multiple uses.2The allowance, in relation to a qualifying activity, for a chargeable period of one year is the relevant percentage of the appropriate proportion of the qualifying expenditure.3A building or structure is “put to multiple uses” if—athe building or structure is used for the purposes of two or more qualifying activities,bpart of the building or structure is in use for the purposes of a qualifying activity and part of the building or structure is in use for the purposes of another activity, orcpart of the building or structure, which is not an area within a dwelling-house, is used both for the purposes of a qualifying activity and for the purposes of another activity.3AFor the purposes of subsection (2), “the relevant percentage” means the percentage specified in section 270AA(5).4For the purposes of subsection (2), the “appropriate proportion” of the qualifying expenditure is the amount of that expenditure that would be apportioned to the qualifying activity if that expenditure were apportioned, on a just and reasonable basis, between all the activities for which the building or structure is used, having regard (in particular) to the extent to which the building or structure is used for each activity in the chargeable period.270EC1This section applies if, at any time, a person sells the relevant interest in a building or structure to another.2The total amount of the allowances under this Part by reference to the building or structure that is available to the person buying the relevant interest is reduced (but not below nil) by the amount of any Part 6 allowance to which the person is entitled by reference to the building or structure.3There is another restriction on the total amount of those allowances which applies if—athe sale in question, or a sale of the relevant interest at an earlier time, is by a person entitled to a Part 6 allowance by reference to the building or structure, andbthe amount paid for the relevant interest on any of those sales is less than the ordinary Part 2A amount (see subsection (6)).4The other restriction is that the total amount of the allowances under this Part by reference to the building or structure that is available to the person buying the relevant interest may not exceed the permitted maximum.5For this purpose “the permitted maximum” is—athe lowest sum paid for the relevant interest on the sale in question or any earlier sale within subsection (3)(a), lessbthe total amount of the allowances under this Part arising by reference to the building or structure since the earliest sale identified for the purposes of paragraph (a) of this subsection.6In this section “the ordinary Part 2A amount” means—athe amount of the qualifying expenditure, by reference to which an allowance can be made under this Part, incurred in relation to the building or structure before the time of the sale in question, lessbthe total amount of the allowances under this Part arising before that time by reference to the building or structure.7In this section any reference to allowances under this Part is to allowances to which an entitlement has arisen under this Part or would have arisen under this Part if the building or structure had been in continuous qualifying use since it was first brought into non-residential use.8In this section “Part 6 allowance”, in relation to a person and a building or structure, means an allowance under Part 6 in respect of expenditure incurred by the person on its construction or acquisition. S. 45H(2) modified (with effect in accordance with s. 167 of the amending Act) by Finance Act 2003 (c. 14) , Sch. 30 para. 7 Pt. 2A inserted (5.7.2019) by The Capital Allowances (Structures and Buildings Allowances) Regulations 2019 (S.I. 2019/1087), regs. 1, 2Word in s. 270EA(3)(a) substituted (1.4.2020 for corporation tax purposes and 6.4.2020 for income tax purposes) by Finance Act 2020 (c. 14), s. 29(3)(a)(6) (with s. 29(7))S. 270EA(3)(aa) inserted (1.4.2020 for corporation tax purposes and 6.4.2020 for income tax purposes) by Finance Act 2020 (c. 14), s. 29(3)(b)(6) (with s. 29(7))S. 270EC substituted (with effect in accordance with Sch. 5 para. 8 of the amending Act) by Finance Act 2020 (c. 14), Sch. 5 para. 2S. 270EB(3A) inserted (10.6.2021) by Finance Act 2021 (c. 26), Sch. 22 para. 11(3)Words in s. 270EB(2) substituted (10.6.2021) by Finance Act 2021 (c. 26), Sch. 22 para. 11(2)