Taxes Consolidation Act 1997 section 380R

Relocation allowance

Section 380R provides rules for calculating the relocation allowance available to traders who relocate from an urban dockland establishment, with provisions governing the treatment of establishment land that is sold, retained, or deemed disposed of.

• The relocation allowance is given in taxing the trade, and the cost of acquiring replacement land is only allowable to the extent it exceeds the market value (or net disposal proceeds) of the original establishment land.
• Where establishment land is sold for more than its market value at the date expenses were first incurred, the excess is clawed back as a trading receipt, capped at the aggregate of relocation allowances previously granted.
• If the establishment land is not fully disposed of within two years of ceasing to use the old installation, a deemed disposal at market value arises on the last day of that period.
• Where establishment land is owned by a connected person, it is treated as owned by the claimant, and all acts of the connected person in relation to that land are treated as acts of the claimant.