Capital Allowances Act 2001 section 356

Apportionment of sums partly referable to non-qualifying assets

Section 356 requires that when a building is sold and the sale price relates partly to assets that qualify for capital allowances and partly to assets that do not, only the portion attributable to qualifying assets is brought into account.

• When a building's relevant interest is sold and the price covers both qualifying and non-qualifying assets, only the qualifying portion counts for capital allowances purposes
• The split between qualifying and non-qualifying must be made on a just and reasonable basis
• The same apportionment rule applies not only to sales but also to proceeds from any other balancing event relating to the building
• This apportionment rule operates independently of, and does not override, any other apportionment provisions elsewhere in the Capital Allowances Act