Capital Allowances Act 2001 section 270BB

Capital expenditure incurred on construction

Section 270BB sets out when capital expenditure on the construction of a building or structure qualifies for structures and buildings allowances, and how the timing of that expenditure is determined when costs are incurred on different dates.

• Capital expenditure on constructing a building or structure is qualifying expenditure provided the relevant interest has not been sold, or was sold only after the building or structure was brought into non-residential use.
• Where construction expenditure is incurred on different days after the building or structure is already in non-residential use, special timing rules apply.
• In those circumstances, the expenditure can be treated as incurred on the latest day any qualifying construction expenditure arises, or on the first day of the following chargeable period.
• Alternatively, expenditure incurred on different days may each be treated as incurred on the first day of the chargeable period following the period in which that particular amount was actually spent.