Capital Allowances Act 2001 section 270BK

Preparation of sites

Section 270BK ensures that capital expenditure on preparing a site for construction is treated in the same way as expenditure on constructing the building or structure itself, for the purposes of structures and buildings allowances.

• Capital expenditure on preparing land as a site for construction qualifies for structures and buildings allowances, provided it is not expenditure on altering land
• Such site preparation expenditure is treated as if it were capital expenditure on the construction of the building or structure
• The date construction is taken to begin, and the conditions for claiming allowances, apply to site preparation work as though it were construction work
• The same treatment extends to the freeport qualifying expenditure rules, so site preparation costs within a freeport tax site are also covered