CA94200 - Structures and buildings allowance (SBA): excluded expenditure: market value rule

CAA01/S270BH

Expenditure incurred on the acquisition of an unused building is excluded to the extent that it exceeds the market value of the relevant interest in the building.

Expenditure is also excluded to the extent that it exceeds the “market value amount” of the works, services or other matters to which it relates. 

The “market value amount” is the amount that it would be normal and reasonable to incur on the construction works in the market conditions prevailing when it was incurred, if it were between persons dealing with each other at arm’s length in the open market.