CA94525 - Structures and buildings allowance (SBA): highway undertakings: highway concessions

CAA01/S270FA(1)-(2), S270FB & S270FC

How SBA conditions are satisfied

A person carrying on a highway undertaking is treated as carrying it on by way of trade and as occupying any road in relation to which it is carried on.

If the person who incurred expenditure on the construction of a road was not, at the time they incurred the expenditure, entitled to an interest but was entitled to a highway concession in respect of the road, the highway concession is treated as the relevant interest. A person who is entitled to a highway concession and builds a road can, therefore, claim SBA on the construction expenditure.

Concession treated as extended

A person whose highway concession for a road has ceased may take up a renewed or new concession for all or part of the road, in which case the original concession will be treated as extended.

If a renewed or new concession has not in fact been granted but the arrangements as existed under the ceased concession continue, the continuing arrangements are treated as if a renewed or new concession has been granted for the purposes of the SBA, whether or not those continuing arrangements are legally enforceable.

The renewed concession is treated as an extension of the original concession provided that the renewed concession is for all or part of the road for which the original concession was granted.

Treat a new concession for all or part of the original road that is taken up by the person who had the original concession or by a connected person in the same way.

The extension lasts only for the period of the new or renewed concession, or so long as the original arrangements continue.

The new or renewed concession does not need to be on the same terms as the previous concession.