Capital Allowances Act 2001 section 354

Buildings temporarily out of use

Section 354 deals with the capital allowances position when an industrial building is temporarily out of use, particularly where the trade using it has permanently ceased or a lease or licence over it has ended.

• Where an industrial building is temporarily out of use, the owner may still be entitled to allowances or liable to charges during the period of disuse.
• If the trade using the building has permanently ceased, or a lease or licence over it has ended, the owner is treated as if the building were still subject to a lease or licence for the purposes of calculating allowances and charges.
• Where a balancing charge arises and the trade has permanently ceased, deductions equivalent to those available against post-cessation receipts may be set against the balancing charge.
• A deemed discontinuance (such as a company ceasing to be within the charge to income tax) does not count as a permanent discontinuance for these purposes, and "trade" includes a profession or vocation in relation to commercial buildings.