Capital Allowances Act 2001 section 393A

Flat conversion allowances

Section 393A provided the framework for flat conversion allowances, a form of capital allowance that encouraged the conversion of unused space above commercial premises into residential flats, before the scheme was repealed.

• Flat conversion allowances were a type of capital allowance designed to incentivise the creation of residential accommodation by converting space above shops and other commercial properties.
• The allowances applied to qualifying expenditure incurred on converting or renovating unused floors above commercial premises into flats suitable for residential letting.
• The scheme was intended to bring empty or underused upper floors of commercial buildings back into productive residential use, particularly in town and city centres.
• The flat conversion allowances regime was repealed by Finance Act 2012, Schedule 39, paragraph 37, meaning no new claims can be made under this provision.