Capital Allowances Act 2001 section 360BA

Expenditure not treated as qualifying expenditure if delay in carrying out works etc.

Section 360BA addresses the treatment of qualifying expenditure on works, services or other matters that are not completed or provided within 36 months of the date the expenditure was incurred.

• Where qualifying expenditure is incurred on works, services or other matters in a chargeable period, but those works, services or other matters are not completed or provided within 36 months of the date the expenditure was incurred, the expenditure is treated as never having been incurred.
• All necessary assessments and adjustments of assessments must be made to give effect to this disallowance.
• If a person discovers that their tax return has become incorrect because of this provision, they must notify HMRC within 3 months of becoming aware of the issue, specifying the amendments required.
• If the works, services or other matters are eventually completed or provided after the 36-month deadline, the expenditure is treated as incurred at the point of completion or provision, thereby restoring entitlement to capital allowances from that later date.