Capital Allowances Act 2001 section 283

Non-industrial part of building disregarded

Section 283 provides a de minimis rule allowing the whole of a building to qualify as an industrial building where the non-qualifying portion is sufficiently small.

• Where part of a building qualifies as an industrial building and part does not, each part must be considered separately
• If the qualifying expenditure on the non-industrial part is 25% or less of the total qualifying expenditure on the whole building, the entire building is treated as an industrial building
• This is a de minimis concession — allowances are given on all the qualifying expenditure, not just the industrial portion
• The rule works by reference to the proportion of qualifying expenditure, not by reference to floor area or any other physical measure