Capital Allowances Act 2001 section 188

Cessation of ownership when person ceases to have qualifying interest

Section 188 explains what happens to a person's ownership of a fixture for capital allowances purposes when they lose their qualifying interest in the land or lease to which the fixture is attached.

• A person who is treated as owning a fixture because of their interest in land or a lease will cease to be treated as the owner if they lose that qualifying interest.
• The qualifying interest is generally the interest in the relevant land — for example, a freehold or leasehold interest — through which the person originally became the deemed owner of the fixture.
• Where the person became the deemed owner as an incoming lessee, the qualifying interest is the lease itself.
• Special rules in section 189 may modify how the qualifying interest is identified in certain circumstances.