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HMRC internal manual

Capital Allowances Manual

From
HM Revenue & Customs
Updated
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Business Premises Renovation Allowance: How allowances and charges are made

CAA01/Ss 360Z and 360Z1

If the person entitled to an allowance or liable to a charge carries on a trade oroccupies the building for a profession or vocation treat the allowance as an expense andthe charge as a receipt of the business.

If the person entitled to an allowance or liable to a charge carries on a propertybusiness treat the allowance as an expense and the charge as a receipt of the business.

If the person entitled to an allowance or liable to a charge does not carry on a trade,profession or vocation and does not have a property business

  • treat the person as carrying on a property business (a virtual property business) and
  • treat the allowance as an expense and the charge as a receipt of that virtual property business.