Capital Allowances Act 2001 section 371

Different relevant interests in different parts of the related agricultural land

Section 371 deals with how qualifying expenditure on constructing an agricultural building is apportioned when the person holds different relevant interests in different parts of the related agricultural land.

• Where a person holds different relevant interests in different parts of the related agricultural land, the construction expenditure must be split between those parts
• The apportionment must be carried out on a just and reasonable basis
• Once apportioned, each portion of expenditure is treated as if it were a separate amount of expenditure incurred in its own right
• This ensures that the capital allowances rules apply independently to each part of the land, reflecting the distinct relevant interest held in each part