Capital Allowances Act 2001 section 307

Building not industrial building when first used etc

Section 307 deals with the denial or withdrawal of initial allowances where a building turns out not to be an industrial building when it is first used, or where the relevant interest is sold before first use.

• No initial allowance is available if the building is not an industrial building when it is first used
• An initial allowance already given for a building intended to be industrial must be withdrawn if the building is not industrial when first used
• An initial allowance must also be withdrawn if the recipient sells their relevant interest before the building is ever used
• All necessary tax assessments and adjustments must be made to give effect to these withdrawal rules