Capital Allowances Act 2001 section 270BD

Sale by a developer: unused buildings or structures

Section 270BD deals with how structures and buildings allowance qualifying expenditure is determined when a developer sells a building or structure before it has ever been used.

• The section applies where a developer constructs a building or structure and sells the relevant interest in it as part of their development trade before it is first used.
• If the developer's sale is the only sale before first use, the capital sum paid by the purchaser is the qualifying capital expenditure.
• If there have been further sales after the developer's sale but still before first use, the qualifying capital expenditure is the lower of the price paid on the final sale before first use and the price paid on the developer's original sale.
• The qualifying expenditure is treated as incurred by the purchaser at the point when they pay the capital sum.