Capital Allowances Act 2001 section 361

Agricultural buildings allowances

Section 361 sets out the basic conditions that must be met for agricultural buildings allowances to be available, defines key terms used throughout Part 4 of the Act, and identifies who is entitled to claim the allowances.

• Capital expenditure on constructing buildings (such as farmhouses, farm buildings or cottages), fences or other works may qualify for agricultural buildings allowances.
• The expenditure must have been incurred by a person with a freehold or leasehold interest in UK land that is occupied wholly or mainly for husbandry purposes, and the expenditure itself must have been for the purposes of husbandry on that land.
• The expenditure must be "qualifying expenditure" as defined elsewhere in the Act, and the terms "agricultural building" and "the related agricultural land" are specifically defined for the purposes of these provisions.
• Allowances are made to whoever holds the "relevant interest" in relation to the qualifying expenditure at the time, meaning that in practice the allowances broadly follow the related agricultural land rather than being permanently attached to the original spender.