Taxes Consolidation Act 1997 section 372AC

Accelerated capital allowances in relation to construction or refurbishment of certain industrial buildings or structures

Section 372AC provides accelerated capital allowances for capital expenditure incurred on the construction or refurbishment of certain industrial buildings or structures situated in a qualifying area.

• The building or structure (or part of it) must be situated wholly within a qualifying area and must be used for the purposes of a trade, such as a factory or mill.
• An initial allowance of 50 per cent is available to both owner-occupiers and lessors in respect of qualifying construction or refurbishment expenditure.
• Alternatively, owner-occupiers (but not lessors) may claim free depreciation of up to 50 per cent of the qualifying expenditure, with the balance written off at 4 per cent per annum.
• No balancing charge arises where the relevant event occurs more than 13 years after the building was first used or, in the case of refurbishment, more than 13 years after the refurbishment expenditure was incurred.