Capital Allowances Act 2001 section 270BE

Sale by a developer: used buildings or structures

Section 270BE ensures that when a developer sells a building or structure that has already been used, the buyer (and any future owner) can still claim structures and buildings allowances on the original construction cost.

• The section applies where a developer has incurred expenditure on constructing a building or structure and then sells it after it has been used.
• The sale must take place in the course of the developer's development trade.
• The buyer of the relevant interest is treated as though the original construction expenditure was qualifying capital expenditure for structures and buildings allowances purposes.
• This treatment also extends to any subsequent purchaser who later acquires the relevant interest in the building or structure.