Capital Allowances Act 2001 section 393U

Apportionment of sums partly referable to non-qualifying assets

Section 393U requires that where a sum received or receivable relates partly to fixtures that qualify for capital allowances and partly to assets that do not qualify, a just and reasonable apportionment must be made.

• Where a disposal value, sale price, or other sum relates to both qualifying fixtures and non-qualifying assets, the total must be apportioned on a just and reasonable basis.
• Only the portion of the sum that is fairly attributable to the qualifying fixtures is brought into the capital allowances computation.
• This ensures that non-qualifying elements — such as land, non-integral building fabric, or other assets outside the fixtures regime — do not distort the allowances calculation.
• The provision was amended by Finance Act 2012, Schedule 39, paragraph 37, as part of wider reforms to the fixtures rules within the capital allowances regime.

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