CA92300 - Structures and buildings allowance (SBA): use: qualifying use for a property business

CAA01/S270CG

A building is treated as being used for the purposes of either an ordinary UK property business or an ordinary overseas property business and, therefore, potentially in qualifying use, during any period in which the person with the relevant interest is entitled to rents, or other receipts, in respect of the building.

The entitlement to rents or other receipts may arise under the terms of a lease or otherwise.

‘Rents’ and ‘other receipts’ here have the same meaning as in ITTOIA05/S266 (‘generating income from land’) PIM1050.

To be so treated, the rents or other receipts must be of amounts as may reasonably be expected between persons dealing with each other at arm’s length in the open market. This includes allowing for any customary and reasonable periods of reduced or nil rents as would be expected in transactions between persons acting at arm’s length.