Capital Allowances Act 2001 section 270FB

The relevant interest

Section 270FB clarifies how the concept of a "relevant interest" applies when capital allowances are claimed on road construction expenditure, particularly where the person constructing the road holds a highway concession rather than a conventional property interest.

• A highway concession is not normally treated as an interest in a road for structures and buildings allowances purposes.
• However, if the person who paid for the road's construction did not hold a conventional interest in the road at the time the expenditure was incurred, but did hold a highway concession, the concession is treated as the relevant interest.
• This ensures that operators who build roads under concession agreements can still claim structures and buildings allowances, even though they do not own the road outright.
• The rule only applies where the person had no other qualifying interest in the road at the time the construction expenditure was incurred.