C1Part 3 Industrial buildings allowances
Chapter 4 Qualifying expenditure
Part of expenditure within time limit for qualifying enterprise zone expenditure
303 Purchase of building within 2 years of first use
1
This section applies if—
a
expenditure is incurred on the construction of an EZ building,
b
only a part of the expenditure is incurred within the time limit,
c
the relevant interest in the building is sold—
i
after the building has been used, but
ii
within the period of 2 years beginning with the date on which the building was first used, and
d
that sale (“the relevant sale”) is the first sale in that period after the building has been used.
2
If this section applies—
a
any balancing adjustment which falls to be made on the occasion of the relevant sale is to be made, and
b
the residue of qualifying expenditure immediately after the relevant sale is to be disregarded for the purposes of this Part.
3
If a capital sum is paid by the purchaser for the relevant interest on the relevant sale—
a
the purchaser is to be treated as having incurred qualifying expenditure—
i
part of which is qualifying enterprise zone expenditure (“Z”), and
ii
part of which is not (“N”), and
b
in relation to that qualifying expenditure, this Part applies as if the building had not been used before the date of the relevant sale.
4
Unless section 304 (cases where developer involved) applies—
and
L is the lesser of—
(a) the capital sum paid for the relevant interest on the relevant sale, and
(b) the expenditure incurred on the construction of the building,
E is the part of the expenditure on the construction of the EZ building that is incurred within the time limit, and
T is the total expenditure on the construction of the building.
5
Any qualifying expenditure arising under this section or section 304 is to be treated as incurred when the capital sum on the relevant sale became payable.
Pt. 3 (ss. 271-360) modified (prosp.) by Proceeds of Crime Act 2002 (c. 29), ss. 448, 458(1), Sch. 10 paras. 18, 21