Capital Allowances Act 2001 section 109

Agricultural buildings

Section 109 of Schedule 3 modifies how contribution allowance rules under section 538 apply to contributions made before 6 April 1990 in connection with agricultural buildings.

• This provision deals with transitional rules for contributions towards agricultural buildings made before 6 April 1990.
• It modifies section 538(2)(b)(ii), which governs how contribution allowances interact with plant and machinery allowances.
• The modification removes the option to allocate expenditure to a pool under Part 2 (plant and machinery) for pre-6 April 1990 contributions.
• The effect is that older contributions connected with agricultural buildings are treated under a simpler regime that does not permit pooling of the expenditure for plant and machinery purposes.