Part 3

Industrial buildings allowances
Chapter 4

Qualifying expenditure

Qualifying expenditure

Purchase of unused building where developer not involved
295
1
This section applies if—
a
expenditure is incurred on the construction of a building,
b
the relevant interest in the building is sold before the building is first used,
c
a capital sum is paid by the purchaser for the relevant interest, and
d
section 296 (purchase of building which has been sold unused by developer) does not apply.
2
The lesser of—
a
the capital sum paid by the purchaser for the relevant interest, and
b
the expenditure incurred on the construction of the building,
is qualifying expenditure.
3
The qualifying expenditure is to be treated as incurred by the purchaser when the capital sum became payable.
4
If the relevant interest is sold more than once before the building is first used, subsection (2) has effect only in relation to the last of those sales.