Capital Allowances Act 2001 section 287

Interest acquired on completion of construction

Section 287 deals with how a person's interest in a building is treated for capital allowance purposes when that interest is only acquired upon or as a result of completing construction of the building.

• Where a person incurs expenditure on constructing a building and gains an interest in it on or as a result of completion, they are treated as having held that interest from the time the expenditure was incurred.
• This ensures that capital allowances are not denied simply because the person did not formally hold an interest during the construction period.
• The provision covers interests acquired both at the point of completion and those acquired shortly after as a consequence of completion.
• A typical example is where a person funding the construction of an industrial building does not receive a lease until after the building is finished.