Capital Allowances Act 2001 section 297

Purchase of used building from developer

Section 297 deals with how industrial buildings allowances work when a buyer purchases a building from a developer after the building has already been used.

• The section applies where a developer constructs a building and then sells it after it has been used, as part of the developer's development trade
• The buyer is treated as if the original construction expenditure was qualifying expenditure for industrial buildings allowance purposes
• Writing-down allowances are deemed to have already been claimed by the developer for the period they held the building, and any balancing adjustment is treated as having been made on the sale
• Special rules for buildings in enterprise zones purchased within two years of first use take precedence over this section