Part 4

Agricultural buildings allowances
Chapter 1

Introduction

Agricultural buildings allowances
361
1
Allowances are available under this Part if—
a
capital expenditure has been incurred on the construction of a building (such as a farmhouse, farm building or cottage) or on the construction of fences or other works,
b
the expenditure was incurred—
i
by a person having a freehold or leasehold interest in land in the United Kingdom occupied wholly or mainly for the purposes of husbandry, and
ii
for the purposes of husbandry on that land, and
c
the expenditure, or other expenditure, is qualifying expenditure.
2
In this Part—
a
“
agricultural building
” means a building, fence or other works referred to in subsection (1)(a), and
b
“
the related agricultural land
” means the land referred to in subsection (1)(b).
3
Allowances under this Part are made to the person who for the time being has the relevant interest (see Chapter 2) in relation to the qualifying expenditure (see Chapter 3).

Meaning of “husbandry”
362
1
In this Part “
husbandry
” includes—
a
any method of intensive rearing of livestock or fish on a commercial basis for the production of food for human consumption, and
b
the cultivation of short rotation coppice.
2
“
Short rotation coppice
” has the meaning given by
section 1125(6) of CTA 2010 (meaning for corporation
tax purposes: tree species planted at high density where stems harvested at intervals of less than 10 years).

Expenditure on the construction of a building
363
For the purposes of this Part, expenditure on the construction of a building does not include expenditure incurred on the acquisition of land or rights in or over land.
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. 4 restricted (19.7.2007) by Finance Act 2007 (c. 11), s. 36(4)-(7)
Pt. 4 omitted (with effect in relation to chargeable periods beginning on or after 1.4.2011 for corporation tax purposes and 6.4.2011 for income tax purposes in accordance with ss. 84(1)(3)(4), 85 of the amending Act) by virtue of Finance Act 2008 (c. 9), s. 84(2) (with Sch. 27)
Words in s. 362(2) substituted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 354 (with Sch. 2)