Capital Allowances Act 2001 section 360F

Interest acquired on completion of conversion

Section 360F deals with the timing of a person's interest in a qualifying building when that interest is only acquired upon or as a result of completing a conversion.

• Where a person spends money converting a qualifying building into qualifying business premises, they may not hold an interest in that building until the conversion is finished.
• If the person becomes entitled to an interest in the building on completion of the conversion, or as a result of its completion, the law treats them as if they already held that interest at the time the conversion expenditure was incurred.
• This backdating of the interest ensures the person can claim business premises renovation allowances on their conversion expenditure, even though they did not technically hold the interest when the spending took place.
• The rule applies solely for the purpose of determining the "relevant interest" in the qualifying building, which is the interest needed to underpin a claim for capital allowances.