Capital Allowances Act 2001 section 358

Requisitioned land

Section 358 explains how capital allowances rules on mineral extraction apply when the Crown requisitions land under wartime defence powers, by treating the arrangement as if it were a lease.

• When land is requisitioned under the Compensation (Defence) Act 1939, the Crown is treated as holding the land under a lease for capital allowances purposes during the requisition period.
• If the Crown authorises a person carrying on a trade to occupy all or part of the requisitioned land, that occupation is treated as a sub-lease granted by the Crown to the occupier.
• Normal rules about surrender, extinguishment and merger of leasehold interests apply, with necessary modifications, to these deemed leases and sub-leases.
• Any payment made by the person entitled to the land to the Crown or the authorised occupier for a building constructed during the requisition period is treated as consideration for the surrender of the lease or sub-lease.