Taxes Consolidation Act 1997 section 372V

Capital allowances in relation to construction or refurbishment of certain park and ride facilities

Section 372V provides a scheme of capital allowances for capital expenditure incurred during the qualifying period on the construction or refurbishment of qualifying park and ride facilities.

• The section treats a qualifying park and ride facility as an industrial building, giving annual writing-down allowances of 4 per cent and an initial allowance of 50 per cent to both owner-occupiers and lessors, plus free depreciation of up to 100 per cent for owner-occupiers only.
• Allowances apply only to expenditure attributable to work actually carried out in the qualifying period, with expenditure incurred in 2007 restricted to 75 per cent and expenditure incurred from 1 January 2008 to 31 July 2008 restricted to 50 per cent.
• Refurbishment expenditure qualifies only where it is at least 10 per cent of the market value of the facility immediately before the expenditure is incurred.
• No balancing charge arises more than 13 years after the facility was first used, and special rules defer allowances where the public transport element of the facility is delayed.