Capital Allowances Act 2001 section 305

Initial allowances for qualifying enterprise zone expenditure

Section 305 sets out the entitlement to initial allowances where a person has incurred qualifying expenditure on a building situated in an enterprise zone.

• A person who has incurred qualifying enterprise zone expenditure may claim an initial allowance where the building concerned is an industrial building.
• The building must be occupied by the person who incurred the expenditure, or by a qualifying lessee, or used by a qualifying licensee.
• A qualifying lessee is a tenant holding a lease over which the relevant interest is reversionary; a qualifying licensee is someone licensed to use the building by either the person who incurred the expenditure or that person's lessee.
• Initial allowances are available for all commercial buildings in enterprise zones, whether or not they are occupied for the purposes of a trade.