Part 3

Industrial buildings allowances
Chapter 4

Qualifying expenditure

Part of expenditure within time limit for qualifying enterprise zone expenditure

Application of section 303 where developer involved
304
1
This section applies if section 303 applies but—
a
the expenditure on the construction of the building was incurred by a developer, and
b
the relevant interest in the building has been sold by the developer in the course of the development trade;
and in this section Z, N, E and T have the same meaning as in section 303.
2
If the sale by the developer is the relevant sale—
Z = Cx E/T
and
N = L - Lx E/T
where—
C is the capital sum paid for the relevant interest by the purchaser, and
L is the lesser of—
(a) the capital sum paid for the relevant interest on the relevant sale, and
(b) the expenditure incurred on the construction of the building.
3
If the sale by the developer is not the relevant sale—
Z = Dx E/T
and
N = D - Z
where D is the lesser of—
(a) the price paid for the relevant interest on its sale by the developer, and
(b) the capital sum paid for the relevant interest on the relevant sale.
Pt. 3 modified (24.2.2003) by Proceeds of Crime Act 2002 (c. 29), s. 458(1), Sch. 10 para. 18 (with Sch. 10 para. 21); S.I. 2003/120, art. 2, Sch. (with arts. 3 4) (as amended (20.2.2003) by S.I. 2003/333, art. 14)
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. 3 modified (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 4 para. 5 ; S.I. 2004/2575 , art. 2(1) , Sch. 1
Pt. 3 modified (E.W.S.) (8.6.2005) by Railways Act 2005 (c. 14), s. 60(2), Sch. 10 para. 4; S.I. 2005/1444, art. 2(1), Sch. 1
Pt. 3 modified (8.6.2005) by Railways Act 2005 (c. 14), s. 60(2), Sch. 10 para. 15; S.I. 2005/1444, art. 2(1), Sch. 1
Pt. 3 modified (24.7.2005) by Railways Act 2005 (c. 14), s. 60(2), Sch. 10 para. 24; S.I. 2005/1909, art. 2, Sch.
Pt. 3 restricted (19.7.2007) by Finance Act 2007 (c. 11), s. 36(1)-(3), (7)
Pt. 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)
Pt. 3 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 21(1)
Pt. 3 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 38(1)