Capital Allowances Act 2001 section 375

Effect of acquisition of relevant interest after first use of building

Section 375 deals with how entitlement to agricultural buildings allowances is transferred when the relevant interest in agricultural land changes hands after the building has already been brought into use.

• When the relevant interest in agricultural land is acquired by a new owner — whether by sale, transfer, operation of law or otherwise — entitlement to writing-down allowances passes from the former owner to the new owner
• The former owner loses entitlement to allowances for any chargeable period after the one in which the acquisition takes place, and receives only a proportionate share of the writing-down allowance for the period in which the acquisition occurs
• The new owner becomes entitled to allowances from the chargeable period in which the acquisition occurs through to the end of the writing-down period, but likewise receives only a proportionate share of the allowance for the period of acquisition
• Where the new owner acquires the relevant interest in only part of the related agricultural land, only the portion of the allowance properly attributable to that part of the land transfers to the new owner, as if it were a separate allowance