Capital Allowances Act 2001 section 270BN

Expenditure incurred before qualifying activity carried on

Section 270BN deals with how structures and buildings allowance expenditure is treated when it is incurred before the person has actually started carrying on the qualifying activity to which it relates.

• Applies where expenditure is incurred for the purposes of a qualifying activity before that activity has commenced
• Only covers expenditure incurred on or after 29 October 2018, the start date for structures and buildings allowances
• The expenditure is treated as if it were incurred on the date the person starts to carry on the qualifying activity
• This ensures the allowance period begins from the start of the qualifying activity rather than from the date the expenditure was actually incurred