Commentary on Sections Glossary Overview
1221.This Part provides for agricultural buildings allowances. These may be writing-down allowances or balancing allowances. It also provides for balancing charges.
1222.Chapter 1 makes allowances available if qualifying expenditure has been incurred on the construction of a building for the purposes of husbandry. The person incurring the expenditure must have an interest in the related agricultural land. The first use of the building must be for husbandry.
1223.Chapter 2 defines the “relevant interest”. Allowances are given to the person holding the relevant interest.
1224.Chapter 3 defines “qualifying expenditure” for the purposes of agricultural buildings allowances.
1225.Chapter 4 provides entitlement to writing-down allowances. These are generally at 4% a year of the qualifying expenditure.
1226.Chapter 5 provides for balancing allowances and balancing charges if the relevant interest in the related agricultural land is transferred or the agricultural building is destroyed.
1227.Chapter 6 gives effect to allowances and charges.