Part 11 Contributions

Chapter 2 Contribution allowances

Contribution allowances under Parts 2, 2A, 3, 4 and 5

F1538ABuildings and structures

(1)

For the purposes of contribution allowances under Part 2A, the references in section 537(2) to expenditure on the provision of an asset are to be treated as references to expenditure which is qualifying expenditure for the purposes of Part 2A.

(2)

This section applies if—

(a)

the general conditions for contribution allowances are met,

(b)

C’s contribution is to expenditure which is qualifying expenditure for the purposes of Part 2A, and

(c)

C’s contribution is made for the purposes of a qualifying activity (within the meaning of Part 2A) which is—

(i)

if R is a public body, an activity carried on, or to be carried on, by C or by a tenant of land in which C has an interest, or

(ii)

if R is not a public body, an activity carried on, or to be carried on, by a tenant of land in which C has an interest.

(3)

C is to be treated for the purposes of allowances under Part 2A as if—

(a)

the contribution were expenditure incurred by C on the construction or acquisition of the building or structure,

F2(b)

the building or structure were brought into qualifying use, for the purposes of the allowance in relation to the contribution, on—

(i)

the day on which R first brought the building or structure into qualifying use, or

(ii)

if R is a public body, the earlier of the day mentioned in sub-paragraph (i) and the day on which R first brought the building or structure into non-residential use,

(c)

for the purposes of section 270AA(2)(b), the day on which the qualifying expenditure is incurred were the day on which C made the contribution.

F3(4)

If, at any time in the period beginning with the day on which C made the contribution and ending with the day on which R first brought the building or structure into non-residential use, C did not have a relevant interest in the building or structure—

(a)

C is to be treated for the purposes of allowances under Part 2A as having had a relevant interest in the building or structure when that period begins, and

(b)

C is not to be treated for those purposes as ceasing to have that interest on any subsequent sale of R’s relevant interest in the building or structure.

(5)

For the purposes of this section, the provisions of Part 2A relating to the relevant interest apply (with any necessary modifications) in relation to the contribution as they apply in relation to expenditure incurred on the construction or acquisition of a building or structure.

(6)

In subsection (2), “public body” means the Crown or any government or public or local authority (whether in the United Kingdom or elsewhere).

F4(7)

In determining, for the purposes of this section, the day on which R first brings a building or structure into non-residential use, ignore any use of the building or structure which is insignificant.