CA94200 - Structures and buildings allowance (SBA): excluded expenditure: market value rule

CAA01/S270BH

Expenditure incurred on the acquisition of an unused building is excluded to the extent that it exceeds the market value of the relevant interest in the building.

Expenditure is also excluded to the extent that it exceeds the 鈥渕arket value amount鈥� of the works, services or other matters to which it relates.聽

The 鈥渕arket value amount鈥� is the amount that it would be normal and reasonable to incur on the construction works in the market conditions prevailing when it was incurred, if it were between persons dealing with each other at arm鈥檚 length in the open market.