Part 3A

Business Premises Renovation Allowances
Chapter 6

WRITING-DOWN ALLOWANCES

Entitlement to writing-down allowances
360I
1
A person is entitled to a writing-down allowance for a chargeable period if he has incurred qualifying expenditure in respect of a qualifying building and, at the end of the chargeable period—
a
the person is entitled to the relevant interest in the qualifying building,
b
the person has not granted a long lease of the qualifying building out of the relevant interest in consideration of the payment of a capital sum, and
c
the qualifying building constitutes qualifying business premises.
2
In subsection (1)(b) “
long lease
” means a lease the duration of which exceeds 50 years.
3
Whether the duration of a lease exceeds 50 years is to be determined—
a
in accordance with section 303 of
ITTOIA
2005, and
b
without regard to section 360Z3(3) of this Act (new lease granted as a result of the exercise of an option treated as continuation of old lease).
4
A person claiming a writing-down allowance may require the allowance to be reduced to a specified amount.
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. 3A inserted (11.4.2007 with effect in accordance with s. 92 of the amending Act) by Finance Act 2005 (c. 7), Sch. 6 para. 1; S.I. 2007/949, art. 2