Section 370 | Purchase of relevant interest before first use of agricultural building ^F1

(1)This section applies if—^F1

(a)capital expenditure has been incurred on the construction of an agricultural building,^F1

(b)the expenditure was incurred for the purposes of husbandry as mentioned in section 361,^F1

(c)the relevant interest is sold before the building is first used, and^F1

(d)a capital sum is paid by the purchaser for the relevant interest.^F1

(2)The lesser of—^F1

(a)the capital expenditure incurred on the construction of the agricultural building, and^F1

(b)the capital sum paid by the purchaser,^F1

is qualifying expenditure.

(3)For the purposes of subsections (1) and (2)—^F1

(a)capital expenditure incurred on the construction of the agricultural building does not include any amount excluded from being taken into account under section 369(3) to (5), and^F1

(b)the capital sum paid by the purchaser for the relevant interest does not include any amount which, on a just and reasonable apportionment, is attributable to assets representing expenditure in respect of which an allowance cannot be made under this Part.^F1

(4)Subsection (3)(b) does not affect sections 562, 563 and 564(1) (apportionment and procedure for determining apportionment).^F1

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

(6)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