Capital Allowances Act 2001 section 276

Parts of trades and undertakings

Section 276 deals with situations where only part of a trade or undertaking qualifies as a qualifying trade for the purposes of industrial buildings allowances, and sets out how the qualifying trade rules apply in those circumstances.

• The rules for qualifying trades and worker welfare buildings apply equally to parts of a trade or undertaking, not just to whole trades.
• Where only part of a trade or undertaking qualifies, a building must be used specifically for that qualifying part in order to be treated as an industrial building.
• In-house maintenance and repair work does not count as a qualifying trade if the wider business carrying out that work is not itself a qualifying trade.
• The section prevents businesses that are not qualifying trades from claiming industrial buildings allowances simply because they carry out ancillary repair or maintenance activities on their own goods or materials.