Section 295 | Purchase of unused building where developer not involved ^F1

(1)This section applies if—^F1

(a)expenditure is incurred on the construction of a building,^F1

(b)the relevant interest in the building is sold before the building is first used,^F1

(c)a capital sum is paid by the purchaser for the relevant interest, and^F1

(d)section 296 (purchase of building which has been sold unused by developer) does not apply.^F1

(2)The lesser of—^F1

(a)the capital sum paid by the purchaser for the relevant interest, and^F1

(b)the expenditure incurred on the construction of the building,^F1

is qualifying expenditure.

(3)The qualifying expenditure is to be treated as incurred by the purchaser when the capital sum became payable.^F1

(4)If the relevant interest is sold more than once before the building is first used, subsection (2) has effect only in relation to the last of those sales.^F1