Capital Allowances Act 2001 section 369

Capital expenditure on construction of agricultural building

Section 369 sets out the rules for determining what capital expenditure on the construction of agricultural buildings qualifies for agricultural buildings allowances, including special restrictions for farmhouses and buildings with mixed use.

• Capital expenditure on constructing an agricultural building for husbandry purposes is qualifying expenditure, provided the relevant interest has not been sold before the building's first use.
• For farmhouses with accommodation and amenities proportionate to the farm, only one third of the construction expenditure counts as qualifying expenditure.
• For farmhouses with disproportionate accommodation and amenities, only a just and reasonable portion of the expenditure — capped at one third — counts as qualifying expenditure.
• For other agricultural buildings used partly for husbandry and partly for other purposes, only the portion of expenditure reasonably attributable to husbandry use qualifies.