Commentary

B3.1102 Business premises renovation—qualifying expenditure

Business tax
Business tax | Commentary

B3.1102 Business premises renovation—qualifying expenditure

Business tax | Commentary

Entitlement to allowances

B3.1102 Business premises renovation—qualifying expenditure

The definition of qualifying expenditure is amended by FA 2014 in relation to expenditure incurred on or after 1 April 2014 (corporation tax) or 6 April 2014 (income tax)1.

Old rules pre FA 2014

Qualifying expenditure is defined as capital expenditure incurred on or in connection with the conversion or renovation of a 'qualifying building' (see B3.1103) into 'qualifying business premises' (see B3.1104), or on capital repairs incidental to such conversion or renovation2. This appears to exclude repair expenditure on a non-qualifying building that is incidental to repairs to a qualifying building.

Expenditure is not qualifying expenditure if it is incurred on or in connection with3:

  1.  

    (a)     the acquisition of land or rights in or over land, accordingly the acquisition costs of the qualifying building itself, or a leasehold interest in it, are excluded

  2.  

    (b)     the extension of a qualifying building, except to the extent required for the purpose of providing a means of getting to or from qualifying business premises

  3.  

    (c)     the development of land adjoining or adjacent to a qualifying building; or

  4.  

    (d)     the provision of plant and machinery, other than plant or machinery which is or becomes a fixture as defined by CAA 2001, s 173(1) (see B3.355)

Capital expenditure on repairs is any expenditure that would not be allowed as a deduction in calculating the profits of a property business, or of a trade, profession or vocation, for tax purposes4.

In London Luton Hotel BPRA Property Fund LLP v Revenue

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial