Capital Allowances Act 2001 section 495

General rule as to what is the relevant interest in the building

Section 495 establishes the general rule for identifying which interest in a building counts as the "relevant interest" for the purposes of capital allowances on buildings.

• The relevant interest is the interest in the building held by the person who incurred the construction expenditure at the time that expenditure was incurred.
• This general rule may be modified by other provisions within the same chapter of the Act.
• Where the person who incurred the construction expenditure held more than one interest in the building at the time, and one of those interests was reversionary on all the others, the reversionary interest is treated as the relevant interest.
• Identifying the correct relevant interest is important because it determines who may claim capital allowances and how those allowances follow the building over time.