Capital Allowances Act 2001 section 360E

General rule as to what is the relevant interest

Section 360E establishes the general rule for identifying which property interest is the "relevant interest" in a qualifying building for the purposes of business premises renovation allowances.

• The relevant interest is the interest in the qualifying building that the person who incurred the qualifying expenditure held at the time the expenditure was incurred.
• Where the person held more than one interest in the building at that time, and one of those interests was reversionary on all the others, the reversionary interest is treated as the relevant interest.
• The relevant interest is not lost simply because a lease or other subordinate interest is subsequently created out of it.
• If the relevant interest is a leasehold interest and it is extinguished when the leaseholder acquires the reversionary interest above it, the merged interest becomes the new relevant interest.