Capital Allowances Act 2001 section 342

The relevant interest

Section 342 explains how the concept of the "relevant interest" in a building applies when someone has spent money constructing a road under a highway concession arrangement.

• A highway concession is not normally treated as an interest in a road for the purposes of identifying the relevant interest
• However, if the person who paid for the road's construction held no other interest in the road but did hold a highway concession over it, that concession is treated as the relevant interest
• Where a concession is renewed or replaced with a new one, the new or renewed concession is treated as a continuation of the original concession when determining the relevant interest
• These rules ensure that road builders operating under highway concessions can still qualify for capital allowances on their construction expenditure