Capital Allowances Act 2001 section 364

General rule as to what is the relevant interest

Section 364 sets out the general rule for identifying the "relevant interest" in relation to qualifying expenditure on an agricultural building, by reference to the interest held in the related agricultural land.

• The relevant interest is the freehold or leasehold interest in the related agricultural land held by the person who incurred the construction expenditure at the time that expenditure was incurred.
• This general rule is subject to other provisions in the same chapter of the Act, which may modify or override it in specific circumstances.
• Where the person held both freehold and leasehold interests, or more than one leasehold interest, in the related agricultural land at the time of the expenditure, and one of those interests was reversionary on all the others, the reversionary interest is treated as the relevant interest.
• Unlike industrial buildings allowances, where the relevant interest is in the building itself, for agricultural buildings allowances the relevant interest is in the related agricultural land rather than in the building.