Capital Allowances Act 2001 section 278

Building used by more than one licensee

Section 278 deals with the condition that must be met for a building occupied by multiple licensees to qualify as being in use for a qualifying trade.

• Where a building is used by more than one licensee of the same person, a special rule applies to determine whether it qualifies for industrial buildings allowances.
• The building will not be treated as being in use for a qualifying trade unless every single licensee uses the building (or the part covered by their licence) for a qualifying trade.
• If even one licensee is not carrying on a qualifying trade in the building, the entire building fails the qualifying use test.
• The provision covers all forms of qualifying trade, including undertakings carried on by way of trade, removing an earlier anomaly in the legislation.