Private Finance Initiative (PFI): capital allowances - highway undertakings
S247, S341 Capital Allowances Act 2001
The industrial buildings allowance (IBA) code extended to capital expenditure on highway undertakings. That is, capital expenditure on the design, building, financing and operation of roads for the purposes of, or in connection with, the exploitation of a highway concession (see CA38050).
A highway concession includes:
- the right to charge tolls in respect of the road (see BIM64385), or
- a right to receive sums from a ‘relevant authority’ because the road will be used by the general public (see BIM64390).
IBAs are no longer available. No allowances are due for chargeable periods beginning on or after 6 April 2011 (1 April 2011 for Corporation Tax). With effect from 2008/09, allowances were phased out by giving part only of a WDA each year. The WDA was calculated in the normal way but only a percentage of it was allowed. Please see CA34600 for full details.