Capital Allowances Act 2001 section 530

Apportionment of sums partly referable to non-qualifying assets

Section 530 deals with how to apportion sale proceeds or other balancing event proceeds when only part of the amount relates to assets that qualify for capital allowances on buildings.

• When a sale price for a building includes both qualifying and non-qualifying assets, only the portion attributable to qualifying assets is taken into account for capital allowances purposes.
• The apportionment between qualifying and non-qualifying elements must be made on a just and reasonable basis.
• The same apportionment rule applies to other proceeds from a balancing event, such as insurance receipts, not just sale proceeds.
• This apportionment rule operates independently of any other apportionment provisions within the capital allowances regime for buildings.