Capital Allowances Act 2001 section 270BL

Apportionment of sums partly referable to non-qualifying assets

Section 270BL explains how expenditure and sale proceeds must be apportioned when they relate partly to assets that qualify for structures and buildings allowances and partly to assets that do not.

• Where expenditure relates partly to qualifying assets and partly to non-qualifying assets, it must be split on a just and reasonable basis.
• When a building or structure is sold, the sale price may include value attributable to both qualifying and non-qualifying assets.
• Only the portion of the sale price that is justly and reasonably attributable to qualifying assets is taken into account for structures and buildings allowances purposes.
• The just and reasonable test applies to both the initial expenditure apportionment and to any subsequent sale proceeds apportionment.