Capital Allowances Act 2001 section 360I

Entitlement to writing-down allowances

Section 360I sets out the conditions that must be met for a person to claim writing-down allowances in respect of qualifying expenditure on a qualifying building under the business premises renovation allowances regime.

• A person who has incurred qualifying expenditure on a qualifying building may claim a writing-down allowance for a chargeable period, provided three conditions are satisfied at the end of that period.
• The person must hold the relevant interest in the qualifying building, must not have granted a long lease (exceeding 50 years) of the building out of that interest in return for a capital sum, and the building must constitute qualifying business premises.
• Whether a lease exceeds 50 years is determined using the rules in section 303 of ITTOIA 2005, ignoring the provision in section 360Z3(3) that treats a new lease granted on exercise of an option as a continuation of the old lease.
• A person claiming a writing-down allowance may elect for the allowance to be reduced to a specified amount, giving flexibility to manage the timing and size of the relief claimed.