Capital Allowances Act 2001 section 270DB

Interest acquired on completion of construction

Section 270DB establishes that where a person funds the construction of a building or structure and obtains an interest in it upon completion, that interest is treated as having existed from when the construction costs were originally incurred.

• This section applies where a person incurs expenditure on constructing a building or structure
• The person must become entitled to an interest in the building or structure on or as a result of the completion of the construction
• In such cases, the person is treated as having held that interest from the time the construction expenditure was originally incurred
• This backdating rule ensures that the relevant interest for structures and buildings allowances purposes runs from when spending occurred, not from when construction finished