CA45500 - Business Premises Renovation Allowance: Initial allowance
CAA01/Section 360G and 360H
The initial allowance is 100% of the qualifying expenditure.
An initial allowance is made for the chargeable period in which the qualifying expenditureis incurred.
A person who claims initial allowance may claim a reduced amount. If they do the balanceof the expenditure after deducting the initial allowance qualifies for WDAs CA45600.
The initial allowance is withdrawn if
- the building is not qualifying business premises when it is first used by the person who claimed the initial allowance or available for letting, or
- the person sells the relevant interest before they bring the building into use or make it available for letting.
- If you need to withdraw the initial allowance you may make any assessments or adjustments needed..
Example Dylan incurs qualifying expenditure of £950,000 converting awarehouse that has been disused for 3 years into a restaurant. He claims initialallowance. Once the conversion work is over he changes his mind about running a restaurantand decides that he does not want to let it. So he sells the restaurant to Cass for £1.2million. The initial allowance that Dylan has claimed is withdrawn.