PART 2A

STRUCTURES AND BUILDINGS ALLOWANCES
CHAPTER 2

QUALIFYING EXPENDITURE

Excluded expenditure

Market value rule
270BH
1
Expenditure is “excluded expenditure” for the purposes of this Part if, and to the extent that, it exceeds—
a
in a case where the qualifying capital expenditure under section 270BC or 270BD is the capital sum paid for the relevant interest in the building or structure, the market value of the interest (see section 577(1)), or
b
in any other case, the market value amount of the works, services and other matters to which it relates.
2
The “market value amount” means the amount of expenditure which it would have been normal and reasonable to incur on the works, services or other matters—
a
in the market conditions prevailing when the expenditure was incurred, and
b
assuming the transaction as a result of which the expenditure was incurred was between persons dealing with each other at arm’s length in the open market.
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, 2