Each of the following is a qualifying activity for the purposes of this Part—
(a) a trade,
(b) a UK property business,
(c) an ... overseas property business,
(d) a profession or vocation,
(e) the carrying on of a concern listed in section 12(4) of ITTOIA 2005 or section 39(4) of CTA 2009 (mines, quarries and other concerns), and
(f) managing the investments of a company with investment business,
but only to the extent that the profits or gains from the activity are, or (if there were any) would be, chargeable to tax.
A business carried on through one or more permanent establishments outside the United Kingdom by a company in relation to which an election under section 18A of CTA 2009 (exemption for profits or losses of foreign permanent establishments) has effect—
(a) is an activity separate from any other activity of the company, and
(b) is to be regarded for the purposes of this Part as an activity all the profits and gains from which are not, or (if there were any) would not be, chargeable to tax.
(1) For the purposes of this Part, managing the investments of a company with investment business consists of pursuing those purposes expenditure on which would be treated as expenses of management within section 1219 of CTA 2009.
(2) In this Part “company with investment business” has the same meaning as in Part 16 of CTA 2009 (see section 1218B of that Act).
(1) A building or structure is in “qualifying use” for the purposes of this Part if it is in non-residential use for the purposes of a qualifying activity carried out by the person who has the relevant interest in the building or structure.
(2) But a building or structure is not treated for the purposes of subsection (1) as being in use for the purposes of a particular activity if the extent to which it is in use for those purposes is insignificant.
(3) The extent to which a building or structure is in use for the purposes of a particular activity is to be determined on a just and reasonable basis.
(4) Section 270EB makes provision for the calculation of the allowance in the case of a building or structure that is put to multiple uses.
(1) For the purposes of this Part, a building or structure is in “residential use” if—
(a) it is used by any person as, or for purposes ancillary to use as—
(i) a dwelling-house,
(ii) residential accommodation for school pupils,
(iii) student accommodation (see subsection (3)),
(iv) residential accommodation for members of the armed forces,
(v) a home or other institution providing residential accommodation (whether for children or adults), except where the accommodation is provided with personal care for persons in need of personal care by reason of old age, disability, past or present dependence on alcohol or drugs or past or present mental disorder, or
(vi) a prison or similar establishment, or
(b) it falls within—
(i) paragraph 3A or 4 of Schedule 14 to the Housing Act 2004 (buildings in England or Wales occupied by students and managed or controlled by educational establishment etc), or
(ii) any corresponding provision having effect in Scotland or Northern Ireland,
(and a building or structure is in “non-residential use” if it is in use which is not residential use).
(2) A building or structure that is situated on land that is, or is intended to be, occupied or enjoyed with a building or structure that is in residential use as a garden or grounds is to be treated for the purposes of this Part as being in residential use.
(3) For the purposes of this Part, a building or structure is in use as student accommodation if—
(a) the accommodation is purpose-built, or is converted, for occupation by students, and
(b) the accommodation is available for occupation by students on at least 165 days of each calendar year.
(4) For the purposes of subsection (3), accommodation is occupied by students if it is occupied exclusively or mainly by persons who occupy it for the purpose of undertaking a course of education (otherwise than as school pupils).
(5) Any part of a building or structure that is used as a dwelling-house (whether or not it is also used for any other purposes) is not in qualifying use.
(1) A building or structure is to be treated, for the purposes of this Part, as being used for the purposes of a UK property business or an overseas property business during any period in respect of which subsection (2) applies.
(2) This subsection applies in relation to a building or structure if the person with the relevant interest is entitled, under the terms of a lease or otherwise, to rents, or other receipts, in respect of the building or structure of such amounts as may reasonably have been expected to have been payable if the transaction had been between persons dealing with each other at arm’s length in the open market.
(3) For the purposes of this section, “rents” and “other receipts” have the same meaning as in section 266 of ITTOIA 2005.
270DA General rule as to what is the relevant interest
(1) The relevant interest in relation to any qualifying expenditure is the interest in the building or structure to which the person who incurred the expenditure on its construction was entitled when the expenditure was incurred.
(2) Subsection (1) is subject to the following provisions of this Chapter and to sections 270FB (highway undertakings) and 270IG (provisions applying on termination of lease).
(3) If—
(a) the person who incurred the expenditure on construction was entitled to more than one interest in the building or structure when the expenditure was incurred, and
(b) one of those interests was reversionary on all the others,
the reversionary interest is the relevant interest.
(4) For the purposes of section 270AA(2), on the sale of the relevant interest in a building or structure, the seller (and not the purchaser) is treated as the person who has the relevant interest on the day of transfer.
270DB Interest acquired on completion of construction
For the purposes of determining the relevant interest, a person who—
(a) incurs expenditure on the construction of a building or structure, and
(b) is entitled to an interest in the building or structure on or as a result of the completion of the construction,
is treated as having had that interest when the expenditure was incurred.
(1) An interest does not cease to be the relevant interest merely because of the creation of a lease or other interest to which that interest is subject.
(2) This is subject to section 270DD (leases granted for 35 years or more).
(1) This section applies if—
(a) qualifying capital expenditure has been incurred on the construction or acquisition of a building or structure,
(b) a lease of the building or structure is granted out of the interest which is the relevant interest in relation to the qualifying expenditure, and
(c) the effective duration of the lease is equal to, or exceeds, 35 years.
(2) If the market value of the retained interest in the building or structure is less than one third of the capital sum given as consideration for the lease—
(a) the lessee is treated, for the purposes of this Part, as acquiring the relevant interest in the building or structure on the grant of the lease, and
(b) on the expiry or surrender of the lease, the lessor is treated, for the purposes of this Part, as acquiring the relevant interest from the lessee.
(3) The capital sum given as consideration for the lease is treated for the purposes of subsection (2) as excluding the amount, in respect of any premium required to be paid under the lease, that is brought into account as a receipt in calculating the lessor’s profits for the purposes of ITTOIA 2005 or CTA 2009 (determined in accordance with section 277 of ITTOIA 2005 or section 217 of CTA 2009).
(4) For the purposes of this section, the “effective duration” of a lease is to be determined in accordance with section 303 of ITTOIA 2005 or section 243 of CTA 2009.
(1) Subsection (2) applies if the relevant interest is a leasehold interest which is extinguished on the person entitled to the interest acquiring the interest which is reversionary on it.
(2) The interest into which the leasehold interest merges becomes the relevant interest when the leasehold interest is extinguished.
(1) This section applies if a person is entitled to an allowance under section 270AA(2) for a chargeable period.
(2) If the chargeable period is more or less than one year, the allowance is proportionately increased or reduced.
(3) If—
(a) the conditions in section 270AA(2)(a) and (b)(i) are met on some, but not all, days during the chargeable period,
(aa) the period mentioned in section 270AA(2)(b)(ii) expires part way through the chargeable period, or
(b) entitlement to the allowance ceases under section 270AA(4) on any day during the chargeable period,
the allowance is proportionately reduced.
(1) This section applies if—
(a) a person is entitled to an allowance under section 270AA(2) by reference to a building or structure for a chargeable period, and
(b) the building or structure is put to multiple uses.
(2) The allowance, in relation to a qualifying activity, for a chargeable period of one year is the relevant percentage of the appropriate proportion of the qualifying expenditure.
(3) A building or structure is “put to multiple uses” if—
(a) the building or structure is used for the purposes of two or more qualifying activities,
(b) part of the building or structure is in use for the purposes of a qualifying activity and part of the building or structure is in use for the purposes of another activity, or
(c) part of the building or structure, which is not an area within a dwelling-house, is used both for the purposes of a qualifying activity and for the purposes of another activity.
(3A) For the purposes of subsection (2), “the relevant percentage” means the percentage specified in section 270AA(5).
(4) For the purposes of subsection (2), the “appropriate proportion” of the qualifying expenditure is the amount of that expenditure that would be apportioned to the qualifying activity if that expenditure were apportioned, on a just and reasonable basis, between all the activities for which the building or structure is used, having regard (in particular) to the extent to which the building or structure is used for each activity in the chargeable period.
(1) This section applies if, at any time, a person sells the relevant interest in a building or structure to another.
(2) The total amount of the allowances under this Part by reference to the building or structure that is available to the person buying the relevant interest is reduced (but not below nil) by the amount of any Part 6 allowance to which the person is entitled by reference to the building or structure.
(3) There is another restriction on the total amount of those allowances which applies if—
(a) the sale in question, or a sale of the relevant interest at an earlier time, is by a person entitled to a Part 6 allowance by reference to the building or structure, and
(b) the amount paid for the relevant interest on any of those sales is less than the ordinary Part 2A amount (see subsection (6)).
(4) The other restriction is that the total amount of the allowances under this Part by reference to the building or structure that is available to the person buying the relevant interest may not exceed the permitted maximum.
(5) For this purpose “the permitted maximum” is—
(a) the lowest sum paid for the relevant interest on the sale in question or any earlier sale within subsection (3)(a), less
(b) the total amount of the allowances under this Part arising by reference to the building or structure since the earliest sale identified for the purposes of paragraph (a) of this subsection.
(6) In this section “the ordinary Part 2A amount” means—
(a) the amount of the qualifying expenditure, by reference to which an allowance can be made under this Part, incurred in relation to the building or structure before the time of the sale in question, less
(b) the total amount of the allowances under this Part arising before that time by reference to the building or structure.
(7) In this section any reference to allowances under this Part is to allowances to which an entitlement has arisen under this Part or would have arisen under this Part if the building or structure had been in continuous qualifying use since it was first brought into non-residential use.
(8) In this section “Part 6 allowance”, in relation to a person and a building or structure, means an allowance under Part 6 in respect of expenditure incurred by the person on its construction or acquisition.
(1) For the purposes of this Part, the carrying on of a highway undertaking is to be treated as the carrying on of an undertaking by way of trade; and accordingly references in this Part to a trade include a highway undertaking.
(2) For the purposes of this Part, a person carrying on a highway undertaking is to be treated as occupying, for the purposes of the undertaking, any road in relation to which it is carried on.
(3) In this Chapter “highway undertaking” means so much of any undertaking relating to the design, building, financing and operation of roads as is carried on—
(a) for the purposes of, or
(b) in connection with,
the exploitation of highway concessions.
(4) In this Chapter “highway concession”, in relation to a road, means—
(a) a right to receive sums from a public body because the road is or will be used by the general public, or
(b) if the road is a toll road, the right to charge tolls in respect of the road.
(5) In subsection (4) “public body” means the Crown or any government or public or local authority (whether in the United Kingdom or elsewhere).
(1) For the purposes of Chapter 4 (the relevant interest in the building or structure) as it applies to expenditure incurred on the construction of a road, a highway concession is not to be treated as an interest in the road.
(2) But if the person who incurred the expenditure on the construction of the road—
(a) was not entitled to an interest in the road when the person incurred the expenditure, but
(b) was at that time entitled to a highway concession in respect of the road,
the highway concession is to be treated as the relevant interest in relation to that expenditure.
270FC Cases where highway concession is to be treated as extended
(1) A highway concession in respect of a road is to be treated as extended if—
(a) the person entitled to the concession takes up a renewed concession in respect of the whole or a part of the road, or
(b) that person or a person connected with that person takes up a new concession in respect of—
(i) the whole or a part of the road, or
(ii) a road that includes the whole or a part of the road.
(2) But the concession is to be treated as extended only—
(a) to the extent that the concession which has in fact ended, and the renewed or new concession, relate to the same road, and
(b) for the period of the renewed or new concession.
(3) A person who has ceased to be entitled to a highway concession is treated, for the purposes of this section, as taking up a renewed or new concession if—
(a) the person is granted a renewed or new concession, or
(b) the arrangements for the concession otherwise continue (whether or not those arrangements are legally enforceable).
(4) For the purposes of subsection (3), it does not matter whether the concession is renewed or replaced, or the arrangements for the concession continue, on the same terms or on modified terms.
For the purposes of this Chapter—
(a) “additional VAT liability” and “additional VAT rebate” have the meaning given by section 547,
(b) the time when—
(i) a person incurs an additional VAT liability, or
(ii) an additional VAT rebate is made to a person,
is given by section 548, and
(c) the chargeable period in which, and the time when, an additional VAT liability or an additional VAT rebate accrues are given by section 549.
(1) This section applies if—
(a) a person is entitled to an allowance under this Part by reference to qualifying expenditure incurred by that person, and
(b) the person incurs an additional VAT liability in respect of the qualifying expenditure.
(2) Subsection (3) applies for the purposes of calculating an allowance under this Part to which the person mentioned in subsection (1) is entitled—
(a) for the chargeable period in which the additional VAT liability accrues, and
(b) for any subsequent chargeable period.
(3) The amount of qualifying expenditure is treated as being increased, at the beginning of the chargeable period in which the additional VAT liability accrues, by the amount of the liability.
(4) If, immediately before the end of the period mentioned in section 270AA(2)(b) (the “allowance period”), the person who is entitled to an allowance under this Part by reference to qualifying expenditure is the person who incurred that expenditure, that person is entitled to an additional amount of allowance for the chargeable period in which the allowance period ends.
(5) The additional amount of allowance is the amount of the difference between—
(a) the amount of the additional VAT liability, and
(b) the total amount of the allowance to which the person has been entitled during the allowance period in respect of the additional VAT liability.
(6) But if an additional VAT rebate is made to the person in respect of the qualifying expenditure by reference to which this section applies, subsection (5) is subject to section 270GC(4) (limit on total allowance).
(1) This section applies if—
(a) a person is entitled to an allowance under this Part by reference to qualifying expenditure incurred by that person, and
(b) an additional VAT rebate in respect of the qualifying expenditure is made to the person.
(2) Subsection (3) applies for the purposes of calculating an allowance under this Part to which the person mentioned in subsection (1) is entitled for—
(a) the chargeable period in which the additional VAT rebate accrues, and
(b) any subsequent chargeable period.
(3) The amount of qualifying expenditure is treated as being reduced, at the beginning of the chargeable period in which the additional VAT rebate accrues, by the amount of the rebate.
(4) The total amount of the allowance available under this Part by reference to the qualifying expenditure incurred by the person mentioned in subsection (1) is limited to—
(a) the amount of qualifying expenditure (including the amount of any additional VAT liability which is treated as qualifying expenditure under section 270GB), less
(b) the amount of any additional VAT rebate by reference to which this section applies,
(and sections 270AA(2)(b)(ii) and 270GB(5) are subject to this subsection).
(1) This section applies if—
(a) on the relevant date, a person is entitled to an allowance under this Part by reference to qualifying expenditure incurred in relation to a building or structure,
(b) the person does not dispose of the relevant interest in the building or structure before the end of the period mentioned in section 270AA(2)(b)(ii) (the “allowance period”), and
(c) at the end of the allowance period, the person is entitled to an allowance under this Part by reference to the qualifying expenditure mentioned in paragraph (a).
(2) The person is entitled to an additional amount of allowance for the chargeable period in which the allowance period ends.
(3) The additional amount of the allowance is 1% of the qualifying expenditure multiplied by the following fraction—
D/365
where D is the number of days during the period beginning with 29 October 2018 and ending with the relevant date in respect of which an allowance under this Part by reference to the qualifying expenditure was made to the person.
(4) For the purposes of this section “the relevant date” means—
(a) for income tax purposes, 5 April 2020, or
(b) for corporation tax purposes, 31 March 2020.
If the qualifying activity of a person who is entitled to an allowance for a chargeable period is a trade, the allowance is to be given effect in calculating the profits of that person’s trade, by treating the allowance as an expense of the trade.
270HB ... UK property businesses and ... overseas property businesses
If the qualifying activity of a person who is entitled to an allowance for a chargeable period is—
(a) a UK property business, or
(b) an ... overseas property business,
the allowance is to be given effect in calculating the profits of that business by treating the allowance as an expense of that business.
If the qualifying activity of a person who is entitled to an allowance for a chargeable period is carrying on a profession or vocation, the allowance is to be given effect in calculating the profits or gains of that person’s profession or vocation by treating the allowance as an expense of the profession or vocation.
If the qualifying activity of a person who is entitled to an allowance for a chargeable period is a concern listed in section 12(4) of ITTOIA 2005 or section 39(4) of CTA 2009 (mines, transport undertakings etc) the allowance is to be given effect in calculating the profits of the concern under Chapter 2 of Part 2 of ITTOIA 2005 by treating the allowance as an expense of the concern.
(1) This section applies if the qualifying activity of a person entitled to an allowance for a chargeable period is managing the investments of a company with investment business.
(2) The allowance is, as far as possible, to be given effect by deducting the amount of the allowance from any income for the period of the business; and section 1233 of CTA 2009 (addition of allowances to company’s expenses of management) applies only so far as it cannot be given effect in this way.
(3) Except as provided by subsection (2), the Corporation Tax Acts apply in relation to the allowance as if it were required to be given effect in calculating the profits of that person’s trade for the purposes of Part 3 of CTA 2009.
(4) Corresponding allowances in the case of the same building or structure are not to be made under this Part both under this section and in any other way.
(5) Expenditure to which this section applies is not to be taken into account otherwise than under this Part or as provided by section 1233 of CTA 2009.
(6) This section is subject to sections 682(3) and 699(3) of CTA 2010.
(1) Sections 270HG and 270HH apply if a company which is carrying on any long-term business is entitled to an allowance under this Part for a chargeable period in respect of a relevant interest in a building or structure consisting of a management asset.
(2) In this section and section 270HG, “management asset” has the same meaning as in Chapter 1 of Part 12 (long-term business).
(1) This section applies if the long-term business of the company consists of—
(a) basic life assurance and general annuity business, and
(b) non-BLAGAB long-term business.
(2) Any allowance under this Part to which the company is entitled for a chargeable period in respect of a management asset must be apportioned between the businesses in accordance with Chapter 7 of Part 2 of FA 2012.
(1) This section applies if a company—
(a) carries on basic life assurance and general annuity business, and
(b) is charged to tax in accordance with the I-E rules in respect of that business.
(2) Any allowance under this Part to which the company is entitled in respect of the basic life assurance and general annuity business is to be given effect by treating it for the purposes of section 76 of FA 2012 as a deemed BLAGAB management expense for the chargeable period in question.
(1) An allowance to which sections 270HG and 270HH apply is not to be given effect otherwise than in accordance with those sections.
(2) Subsection (1) does not prevent any allowance which is to be given effect under those sections from being taken into account in any calculation for the purposes of—
(a) section 93(5) of FA 2012 (minimum profits test), or
(b) section 103 of FA 2012 (rules for determining policyholders’ share of I-E profit).
(1) This section applies if a person (the “current owner”) is entitled to an allowance for a chargeable period under section 270AA by reference to a building or structure.
(2) For the purposes of determining the amount of the allowance, the amount of the qualifying expenditure is treated as nil unless, before the current owner first makes a claim for an allowance under this Part, the allowance statement requirement is met.
(3) The “allowance statement requirement” is met if—
(a) in a case where the current owner incurred the qualifying expenditure in relation to the building or structure, the current owner makes an allowance statement;
(b) in any other case, the current owner obtains (directly or indirectly) an allowance statement (or a copy of it) from any person who has previously been entitled to a relevant interest in the building or structure.
(4) In this section an “allowance statement” means a written statement, identifying the building or structure to which it relates, of—
(a) the date of the earliest ... contract for the construction of the building or structure,
(b) the amount of qualifying expenditure incurred on its construction or acquisition,
(c) the date on which the building or structure is first brought into non-residential use , and
(d) where qualifying expenditure is incurred on the construction or acquisition of the building or structure after the date mentioned in paragraph (c), the date on which the expenditure is incurred.
(5) Where the qualifying expenditure described in subsection (4)(b) consists of or includes special tax site qualifying expenditure (as defined in section 270BNA), a statement is not an allowance statement unless it states the amount of the special tax site qualifying expenditure.
(1) This section applies if at any time—
(a) avoidance arrangements exist in relation to a building or structure (whether or not a person with a relevant interest in the building or structure is party to them), and
(b) as a result of those arrangements, a person would, but for this section, obtain a tax advantage under this Part.
(2) The tax advantage is to be counteracted by making such adjustments as are just and reasonable.
(3) Adjustments made under this section may affect the tax treatment of persons other than the person in relation to whom the tax advantage is counteracted.
(4) In subsection (1)(a) “avoidance arrangements” means arrangements the main purpose, or one of the main purposes, of which is to obtain a tax advantage (for any person) under this Part.
(5) References in this section to obtaining a tax advantage under this Part include obtaining an allowance that is in any way more favourable to a person than the one that would otherwise be obtained.
(6) In subsection (4) “arrangements” includes any agreement (including an agreed valuation), understanding, scheme, transaction or series of transactions (whether or not legally enforceable).
270IC Co-ownership schemes: carrying on qualifying activity
(1) This section applies where the participants in a co-ownership ...contractual scheme together carry on a qualifying activity.
(2) Each participant in the scheme is for the purposes of this Part to be regarded as carrying on the qualifying activity.
(3) Subsection (2) applies in relation to a participant only to the extent that the profits or gains arising to the participant from the qualifying activity are, or (if there were any) would be, chargeable to tax.
(4) But in determining for the purposes of subsection (1) whether or to what extent the participants in a co-ownership ... contractual scheme together carry on a qualifying activity, assume that profits or gains arising to all participants from the qualifying activity are, or (if there were any) would be, chargeable to tax.
(1) The operator of a co-ownership authorised contractual scheme , or a converted Reserved Investor Fund (Contractual Scheme), may make an election under this section if an election under section 262AB (plant and machinery allowances: co-ownership schemes) has been made, before the relevant date, in relation to the scheme (whether or not that election has subsequently been withdrawn in accordance with section 262AEA).
(2) The election must specify an accounting period of the scheme as the first accounting period in relation to which the election has effect.
(3) But the election may not specify an accounting period ending—
(a) more than 12 months before the election is made, or
(b) more than 12 months after the end of the accounting period in which a building or structure which is subject to the scheme, and by reference to which an allowance is available under this Part, is first brought into qualifying use.
(4) The first accounting period must not be longer than 12 months.
(5) The election has effect for that first accounting period and all subsequent accounting periods of the scheme.
(6) The election is irrevocable.
(7) The election is made by notice to an officer of Revenue and Customs.
(7A) In subsection (1)—
(a) a “converted Reserved Investor Fund (Contractual Scheme)” means a Reserved Investor Fund (Contractual Scheme) that was previously a co-ownership authorised contractual scheme, and
(b) the reference to an election having been made under section 262AB in respect of a converted Reserved Investor Fund (Contractual Scheme) is a reference to such an election having been made in respect of the scheme when it was a co-ownership authorised contractual scheme.
(7B) An election under this section in respect of a converted Reserved Investor Fund (Contractual Scheme) is unaffected for so long as the scheme is—
(a) a Reserved Investor Fund (Contractual Scheme),
(b) a co-ownership authorised contractual scheme, or
(c) an unauthorised contractual scheme,
and the application of this Chapter in respect of the scheme is not affected by any change to the nature of the scheme so long as it remains of a type set out in paragraphs (a) to (c).
(8) For the purposes of this section and section 270IE, the “relevant date” is the date on which this Part comes into force.
270IE Co-ownership schemes: calculation of allowance after an election
(1) This section applies if—
(a) an election under section 270ID, or
(b) an election under section 262AB (plant and machinery allowances: co-ownership schemes) made on or after the relevant date,
has effect for an accounting period of a co-ownership ... contractual scheme (“the relevant period”).
(2) The operator of the scheme is to calculate the allowances that would be available to the scheme under this Part in relation to the relevant period on the basis of the assumptions in subsection (3).
(3) The assumptions are—
(a) the scheme is a person;
(b) the relevant period is a chargeable period for the purposes of this Act;
(c) any qualifying activity carried on by the participants in the scheme together is carried on by the scheme;
(d) property which was subject to the scheme at the beginning of the first accounting period for which the election has effect—
(i) ceased to be owned by the participants at that time, and
(ii) was acquired by the scheme at that time;
(e) any property which became subject to the scheme at a time during an accounting period for which the election has effect was acquired by the scheme at that time;
(f) property which ceased to be subject to the scheme at any such time ceased to be owned by the scheme at that time.
(4) The operator of the co-ownership ... contractual scheme must allocate to each participant in the scheme a proportion (which may be zero) of the allowances calculated under this section.
(5) The allocation is to be on the basis of what is just and reasonable.
(6) In determining what is just and reasonable—
(a) regard is to be had in particular to the relative size of each participant’s holding of units in the scheme;
(b) no regard is to be had to—
(i) whether or to what extent a participant is liable to income tax or corporation tax, or
(ii) any other circumstances relating to a participant’s liability to tax.
(7) If the participants in the scheme together carry on more than one qualifying activity, the calculation and allocation under this section are to be made separately for each activity.
(8) The proportion of an allowance allocated by the operator to a participant under this section for a qualifying activity is the total amount of the allowance available to the participant under this Part in relation to the relevant period by virtue of carrying on that activity as a participant in the scheme.
(9) For the purposes of subsection (3)(c), assume that profits or gains arising to all participants from the qualifying activity are, or (if there were any) would be, chargeable to tax.
(10) For the purposes of section 270IA (evidence of qualifying expenditure etc), the operator of a co-ownership scheme may be treated as—
(a) the “current owner” in relation to property which is subject to the scheme, or
(b) the “previous owner” in relation to property which has ceased to be subject to the scheme.
270IF Co-ownership schemes: definitions relating to schemes
Section 262AF (co-ownership schemes: definitions relating to schemes) applies for the purposes of sections 270IC to 270IE as it applies for the purposes of sections 262AA to 262AF.
(1) This section applies for the purposes of this Part.
(2) A lease is treated as continuing if it is renewed, extended or replaced.
(3) If a lease is terminated and, with the consent of the lessor, the lessee of a building or structure remains in possession of the building or structure after the termination without a new lease being granted to the lessee, the lease is treated as continuing so long as the lessee remains in possession.
(4) If, on the termination of a lease, a new lease is granted to the lessee as a result of the exercise of an option available to the lessee under the terms of the first lease, the second lease is treated as a continuation of the first.
(5) If, on the termination of a lease, the lessor pays a sum to the lessee in respect of a building or structure comprised in the lease, the lease is treated as if it had come to an end by surrender in consideration of the payment.
(6) If—
(a) on the termination of a lease, another lease is granted to a different lessee, and
(b) in connection with the transaction that lessee pays a sum to the person who was the lessee under the first lease,
the two leases are to be treated as if they were the same lease which had been assigned by the lessee under the first lease to the lessee under the second lease in consideration of the payment.
(1) In this Part “lease” includes—
(a) an agreement for a lease if the term to be covered by the lease has begun,
(b) any tenancy, and
(c) in the case of land outside the United Kingdom, an interest corresponding to a lease,
but does not include a mortgage (and “lessee”, “lessor” and “leasehold interest” are to be read accordingly).
(2) In the application of this Part to Scotland—
(a) “leasehold interest” (or “leasehold estate”) means the interest of a tenant in property subject to a lease, and
(b) any reference to an interest which is reversionary on a leasehold interest or on a lease is to be read as a reference to the interest of the landlord in the property subject to the leasehold interest or lease.
(1) Allowances are available under this Part if—
(a) expenditure has been incurred on the construction of a building or structure,
(b) the building or structure is (or, in the case of an initial allowance, is to be)—
(i) in use for the purposes of a qualifying trade,
(ii) a qualifying hotel,
(iii) a qualifying sports pavilion, or
(iv) in relation to qualifying enterprise zone expenditure, a commercial building or structure, and
(c) the expenditure incurred on the construction of the building or structure, or other expenditure, is qualifying expenditure.
(2) In the rest of this Part—
(a) “building” is short for “building or structure”, and
(b) “industrial building” means, subject to Chapter 2 (which defines terms used in subsection (1)(b) etc.), a building or structure which is within subsection (1)(b).
(3) Allowances under this Part are made to the person who for the time being has the relevant interest in the building (see Chapter 3) in relation to the qualifying expenditure (see Chapter 4).