Capital Allowances Act 2001 section 270BJ

Expenditure on renovation, conversion or incidental repairs

Section 270BJ explains how expenditure on renovating, converting, or carrying out incidental repairs to part of a building or structure qualifies for structures and buildings allowances by treating it as if it were original construction expenditure.

• Expenditure on renovating or converting part of a building, or on repairs incidental to that work, is treated as if it were expenditure on constructing that part for the first time
• For buildings already in use before 29 October 2018, the renovation or conversion is similarly treated as first-time construction, bringing it within the structures and buildings allowances regime
• For buildings already in use before their location became a freeport tax site, the same first-time construction treatment applies for the purposes of freeport qualifying expenditure rules
• Where the renovation, conversion, or incidental repair expenditure relates to a qualifying activity, it is treated as capital expenditure if it cannot otherwise be deducted as a revenue expense when calculating profits for tax purposes