Capital Allowances Act 2001 section 286

General rule as to what is the relevant interest

Section 286 defines the "relevant interest" in a building for the purposes of claiming capital allowances on qualifying expenditure, and explains how this is determined when a person holds more than one interest in the same building.

• The relevant interest is the interest in the building held by the person who incurred the construction expenditure at the time that expenditure was incurred.
• Where the person held multiple interests in the building at that time, and one of those interests was reversionary on all the others, the reversionary interest is treated as the relevant interest.
• This general rule is subject to modification by other provisions in the same chapter of the Act.
• Specific overriding rules also apply in the case of highway undertakings and on termination of a lease.