Taxes Consolidation Act 1997 section 282

Supplementary provisions (Chapter 1)

Section 282 deals with the deemed interest in an industrial building or structure where construction expenditure is incurred before the building exists, and with the exclusion of non-qualifying expenditure when calculating balancing adjustments.

• A person who incurs capital expenditure on constructing an industrial building is treated as having an interest in the building even before construction begins or is completed
• This ensures the person holds a "relevant interest" for capital allowance purposes from the time the expenditure is incurred, regardless of whether a physical building exists at that point
• When a building is sold or compensation is received, any portion of the proceeds attributable to assets that did not qualify for capital allowances (such as site costs) must be excluded from the calculation
• This exclusion applies when computing balancing allowances or balancing charges under section 280