Capital Allowances Act 2001 section 270EB

Multiple uses

Section 270EB deals with how structures and buildings allowances are calculated when a building or structure is used for more than one purpose, requiring the qualifying expenditure to be apportioned on a just and reasonable basis between the different activities.

• A building or structure is treated as having multiple uses where it serves two or more qualifying activities, or where parts are used for qualifying and non-qualifying activities, or where the same part (other than an area within a dwelling-house) is used for both qualifying and non-qualifying purposes
• Where multiple uses apply, the annual allowance is the standard percentage rate applied to the appropriate proportion of the qualifying expenditure attributable to the relevant qualifying activity
• The appropriate proportion is determined by apportioning the qualifying expenditure on a just and reasonable basis between all activities, having particular regard to the extent of use for each activity during the chargeable period
• The relevant percentage rate used in the calculation is the rate specified in section 270AA(5), which is the standard annual rate for structures and buildings allowances (currently 3%)