Capital Allowances Act 2001 section 360Z2

Apportionment of sums partly referable to non-qualifying assets

Section 360Z2 deals with how to apportion a sale price or other proceeds when a transaction involves a mix of assets that qualify for allowances under the structures and buildings allowance rules and assets that do not.

• Where a sale price covers both qualifying and non-qualifying assets, only the portion reasonably attributable to qualifying assets counts for allowance purposes
• The apportionment must be carried out on a just and reasonable basis
• The same apportionment rule applies to any other proceeds arising from a balancing event, not just a straightforward sale
• This apportionment rule does not override or replace any other apportionment requirements elsewhere in the Capital Allowances Act