Capital Allowances Act 2001 section 360L

Grants affecting entitlement to allowances

Section 360L sets out how receiving grants or certain payments in connection with a qualifying building can prevent or remove entitlement to structures and buildings allowances.

• No initial or writing-down allowance is available if a relevant grant or payment has been made towards the expenditure, or towards any other expenditure on the same building and single investment project.
• Allowances already given must be withdrawn if a relevant grant or payment is subsequently made towards the expenditure, or within three years of the expenditure being incurred towards other expenditure on the same building and project.
• A relevant grant or payment means either a State aid (other than an allowance under this Part) or any other grant or subsidy that the Treasury has specifically declared relevant for these purposes by order.
• Where a tax return becomes incorrect because of these rules, the taxpayer must notify HMRC within three months of becoming aware of the inaccuracy.