Capital Allowances Act 2001

[F1 Buildings in use for the purposes of a qualifying tradeU.K.

274 Trades and undertakings which are “qualifying trades”U.K.

(1)“Qualifying trade” means—

(a)a trade of a kind described in Table A, or

(b)an undertaking of a kind described in Table B, if the undertaking is carried on by way of trade.

(2)Item 6 of Table B needs to be read with Chapter 9 (application of this Part to highway undertakings).

275 Building used for welfare of workersU.K.

A building is in use for the purposes of a qualifying trade if it is—

(a)provided by the person carrying on the qualifying trade for the welfare of workers employed in that qualifying trade, and

(b)in use for the welfare of such workers.

276 Parts of trades and undertakingsU.K.

(1)Sections 274 and 275 apply in relation to part of a trade or undertaking as they apply in relation to a trade or undertaking.

But this is subject to subsections (2) and (3).

(2)If—

(a)a building is in use for the purpose of a trade or undertaking, and

(b)part only of the trade or undertaking is a qualifying trade,

the building is in use for the purposes of the qualifying trade only if it is in use for the purposes of that part of the trade or undertaking.

(3)Maintaining or repairing goods or materials is not a qualifying trade if—

(a)the goods or materials are employed in a trade or undertaking,

(b)the maintenance or repair is carried out by the person employing the goods or materials, and

(c)the trade or undertaking is not itself a qualifying trade.

277 Exclusion of dwelling-houses, retail shops, showrooms, hotels and offices etc.U.K.

(1)A building is not in use for the purposes of a qualifying trade if it is in use as, or as part of, or for any purpose ancillary to the purposes of—

(a)a dwelling-house;

(b)a retail shop, or premises of a similar character where a retail trade or business (including repair work) is carried on;

(c)a showroom;

(d)a hotel;

(e)an office.

(2)Subsection (3) is about buildings constructed for occupation by, or for the welfare of persons employed—

(a)on, or in connection with, working land outside the United Kingdom which is used as described in item 5 of Table A in section 274 (foreign plantations), or

(b)at, or in connection with, working a source of mineral deposits as defined in item 7 of Table A (mineral extraction).

(3)Subsection (1) does not apply to a building which this subsection is about if the building—

(a)is likely to be of little or no value to the person carrying on the trade when the land or source is no longer worked, or

(b)will cease to be owned by that person on the ending of a foreign concession under which the land or source is worked.

(4)“Foreign concession” means a right or privilege granted by the government of, or any municipality or other authority in, a territory outside the United Kingdom.

(5)Subsection (1) is subject to section 283 (non-industrial part of building disregarded).

278 Building used by more than one licenseeU.K.

A building used by more than one licensee of the same person is not in use for the purposes of a qualifying trade unless each licensee uses it, or the part to which the licence relates, for the purposes of a qualifying trade.]