Capital Allowances Act 2001 section 270BC

Sale of unused buildings or structures (other than by a developer)

Section 270BC determines how qualifying expenditure for structures and buildings allowances is calculated when a building or structure that has never been used is sold by someone who is not a developer.

• The section applies where construction expenditure has been incurred, the building or structure is sold before it is first used, a capital sum is paid by the purchaser, and the sale is not one made by a developer (which is covered separately by section 270BD).
• The qualifying expenditure is the lower of the purchase price and the original construction cost — the purchaser cannot claim more than what was actually spent on building it.
• The qualifying expenditure is treated as incurred by the purchaser at the date the capital sum is paid, which is the point from which the allowance period effectively begins for the purchaser.
• If the building or structure is sold more than once before it is first used, only the final sale before first use counts for determining the qualifying expenditure.