Capital Allowances Act 2001 section 270CG

Use for the purposes of a property business

Section 270CG establishes when a building or structure is treated as being used for the purposes of a property business, so that structures and buildings allowances can be claimed.

• A building or structure is treated as used for a UK or overseas property business during any period where the relevant conditions are met
• The person holding the relevant interest must be entitled to rents or other receipts in respect of the building or structure
• Those rents or receipts must be at amounts that would reasonably be expected in an arm's length, open market transaction between unrelated parties
• The terms "rents" and "other receipts" take their meaning from section 266 of the Income Tax (Trading and Other Income) Act 2005