Capital Allowances Act 2001 section 175

Meaning of "interest in land", etc

Section 175 defines what counts as an "interest in land" for the purposes of the flat conversion allowances chapter, and clarifies who is treated as holding that interest when land is used as security for a loan.

• An "interest in land" includes freehold ownership, leases, easements or servitudes, agreements to acquire these, and licences to occupy land
• In Scotland, the equivalent concept is the interest of the owner or an agreement to acquire such an interest
• Where an interest in land has been transferred to a lender as security for a loan, the borrower (not the lender) is treated as holding the interest, provided there is a right of redemption
• This ensures that the person who actually uses or controls the land can claim the relevant capital allowances, rather than a lender who merely holds the interest as collateral