Capital Allowances Act 2001 section 282

Buildings outside the United Kingdom

Section 282 sets out the conditions under which a building located outside the United Kingdom can qualify as an industrial building for the purposes of capital allowances.

• A building outside the UK used for trade purposes does not qualify as an industrial building unless the trade profits are taxable in the UK.
• The trade profits must be assessable under the normal UK rules for calculating trade profits for either income tax or corporation tax purposes.
• This rule applies to all categories of buildings, including commercial buildings, though in practice commercial buildings are always located in UK enterprise zones and so are unaffected.
• The effect is to prevent industrial buildings allowances being claimed on overseas buildings where the associated trade profits fall outside the UK tax net.