Capital Allowances Act 2001 section 270IC

Co-ownership schemes: carrying on qualifying activity

Section 270IC establishes how participants in a co-ownership authorised contractual scheme are each treated as carrying on a qualifying activity for the purposes of structures and buildings allowances.

• Where participants in a co-ownership authorised contractual scheme together carry on a qualifying activity, each participant is treated as carrying on that activity individually for the purposes of this Part.
• A participant is only treated as carrying on the qualifying activity to the extent that their share of the profits or gains from the activity is, or would be, chargeable to tax.
• When determining whether the participants together carry on a qualifying activity in the first place, it is assumed that all participants' profits or gains are chargeable to tax.
• This means that the tax status of individual participants does not prevent the scheme as a whole from being regarded as carrying on a qualifying activity, even though it may limit individual participants' entitlement to allowances.