Capital Allowances Act 2001 section 270BF

Meaning of references to carrying on trade as a developer

Section 270BF defines what it means to carry on a trade as a developer for the purposes of the structures and buildings allowances rules on sales by developers.

• A developer is someone whose trade consists wholly or partly of constructing buildings or structures with the intention of selling them.
• A sale is made "in the course of the development trade" if it occurs as part of the developer's trade, or specifically as part of the construction-for-sale element of a wider trade.
• The definition applies for the purposes of sections 270BD and 270BE, which deal with sales by developers of unused and used buildings or structures respectively.
• The definition ensures that only sales genuinely connected to a construction-for-sale trade qualify under the developer sale provisions, rather than any incidental disposal of property.