Capital Allowances Act 2001 section 415

Contribution to buildings or works for benefit of employees abroad

Section 415 deals with capital contributions made towards buildings or works that benefit employees working at mineral extraction sites outside the UK, and sets out when such contributions qualify for capital allowances.

• Capital sums contributed towards employee-related buildings or works overseas can be qualifying expenditure if they are incurred for the purposes of a mineral extraction trade carried on outside the UK.
• Qualifying buildings and works include employee housing, utility supply works (water, gas or electricity), and facilities providing welfare services for employees or their dependants.
• The buildings or works must be likely to have little or no value to the last person working the source once extraction ceases.
• No allowance is available if the contributor acquires an asset as a result of the expenditure, or if relief is already available under another provision of the Tax Acts.