Capital Allowances Act 2001 section 336

Writing off expenditure when building not an industrial building

Section 336 deals with how qualifying expenditure is written off for periods during which a building was not used as an industrial building, even though it was in use for some other purpose.

• Applies where a building was not an industrial building for any period between its first use and the point at which the residue of qualifying expenditure is calculated
• Notional writing-down allowances for those non-industrial periods are written off when the residue of qualifying expenditure is ascertained
• The notional allowances are the amounts that would have been given had the building remained an industrial building throughout, using the rates that would have applied in light of any relevant sale
• A relevant sale is a disposal of the relevant interest that triggers a balancing adjustment under section 314