Taxes Consolidation Act 1997 section 380U

Allowances in respect of certain buildings

Section 380U provides enhanced industrial buildings allowances where a person carrying on a relevant trade incurs capital expenditure on constructing a new industrial building or structure as part of a new installation.

• The relief applies where qualifying expenditure on a new installation includes capital expenditure on a new industrial building or structure to be occupied for the purposes of a relevant trade.
• The standard industrial buildings allowance under section 271 is modified so that the initial allowance equals 100% of the capital expenditure on the building or structure.
• In addition to the 100% allowance, a separate further allowance of 50% of the qualifying expenditure on the building or structure is granted for the chargeable period related to that expenditure.
• Both the modified 100% allowance and the additional 50% allowance are made in taxing the relevant trade.

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