Capital Allowances Act 2001 section 393E

High value flats

Section 393E defines what constitutes a "high value flat" for the purposes of the flat conversion allowance rules, setting a market value threshold above which flats do not qualify for the allowance.

• A flat is a "high value flat" if its market value exceeds a specified threshold at the time the conversion expenditure is incurred.
• The market value threshold is £350,000 for flats in postcode districts beginning with certain London postcodes, and £150,000 for flats elsewhere in the United Kingdom.
• If a flat is a high value flat, the expenditure on creating it through conversion does not qualify for flat conversion allowances.
• The provision was amended by the Finance Act 2012, Schedule 39, paragraph 37.