Taxes Consolidation Act 1997 section 843A

Capital allowances for buildings used for certain childcare purposes

Section 843A provided a scheme of capital allowances for expenditure on the construction, conversion or refurbishment of qualifying childcare facilities.

• Capital expenditure on a building used to provide a pre-school service (and, optionally, day-care for older children) qualified for deemed industrial building allowances during the qualifying period from 1 December 1999 to 30 September 2010, with extensions to 31 March 2011 or 31 March 2012 in certain cases.
• Qualifying expenditure was written off over seven years at 15% per annum for the first six years and 10% in year seven; alternatively, a 100% initial allowance or 100% free depreciation was available.
• For premises first used on or after 1 February 2007 the tax life and balancing event holding period increased to 15 years, though the write-off rate remained unchanged.
• Property developers (and, from 1 January 2008, persons connected with property developers) were excluded from the scheme.