BIM64380 - Measuring the profits (particular trades): Private finance initiative (PFI): Capital allowances - highway undertakings

CAA01/S341 expanded the industrial buildings allowance code to include capital expenditure on highway undertakings (CAA01/S247 table B, item 6). That is, capital expenditure on the design, building, financing and operation of roads for the purposes of, or in connection with, the exploitation of a highway concession (see CA38050).

A highway concession includes:

• the right to charge tolls in respect of the road (see BIM64385), or
• a right to receive sums from a “relevant authority” because the road will be used by the general public (see BIM64390).
• FA2008 phased out IBA WDA (from 2008/09) by giving part only of a WDA each year. The WDA is calculated in the normal way but only a percentage of it is allowed. Please see CA34600 for full details.