Capital Allowances Act 2001 section 270BNA

Meaning of "freeport qualifying expenditure"

Section 270BNA defines what counts as "freeport qualifying expenditure" for the purposes of structures and buildings allowances, setting out the five conditions that must all be met for expenditure on constructing or acquiring a building or structure to qualify for the enhanced freeport tax relief.

• Construction must begin while the site is a designated freeport tax site, with the start date determined by when the first construction contract is entered into.
• Both the first qualifying use of the building and the incurring of the expenditure must occur while the area is a freeport tax site and on or before 30 September 2026.
• The person incurring the expenditure must be within the charge to income tax or corporation tax at the time the expenditure is incurred.
• The person must make a positive election in their allowance statement that they want the expenditure to be treated as freeport qualifying expenditure.