[F1296 Purchase of building which has been sold unused by developerU.K.
(1)This section applies if—
(a)expenditure is incurred by a developer on the construction of a building, and
(b)the relevant interest in the building is sold by the developer in the course of the development trade before the building is first used.
(2)If—
(a)the sale of the relevant interest by the developer was the only sale of that interest before the building is used, and
(b)a capital sum is paid by the purchaser for the relevant interest,
the capital sum is qualifying expenditure.
(3)If—
(a)the sale by the developer was not the only sale before the building is used, and
(b)a capital sum is paid by the purchaser for the relevant interest on the last sale,
the lesser of that capital sum and the price paid for the relevant interest on its sale by the developer is qualifying expenditure.
(4)The qualifying expenditure is to be treated as incurred by the purchaser when the capital sum referred to in subsection (2)(b) or (3)(b) became payable.]
Textual Amendments
F1Pt. 3 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, 86 of the amending Act) by virtue of Finance Act 2008 (c. 9), s. 84(2) (with Sch. 27)