Capital Allowances Act 2001 section 360H

Premises not qualifying business premises or relevant interest sold before premises first used or let

Section 360H deals with the circumstances in which an initial allowance for business premises renovation is denied or withdrawn.

• No initial allowance is available if the qualifying building is not qualifying business premises at the point it is first used or first suitable for letting
• A previously granted initial allowance must be withdrawn if the building fails to qualify as business premises at the relevant time, or the holder sells their interest before the premises are first used or ready for letting
• HMRC will make all necessary tax assessments and adjustments to claw back any withdrawn allowance
• The "relevant time" is defined as the earlier of when the premises are first used by the interest holder or when they first become suitable for letting for qualifying trade or professional purposes