Where there are buildings situated on the land the undeveloped
market value reported by the District Valuer, which is to be
excluded from qualifying expenditure, will reflect the value of the
buildings.
Where, either at the time of acquisition of the interest in
the land or later, the buildings cease permanently to be used for
any purpose their ‘unrelieved value’ is treated as
qualifying expenditure. This is treated as incurred at the time
when there is permanent cessation of use, not before.
The ‘unrelieved value’ is the value of the
buildings determined as at the date of acquisition of the interest
in the land (and ignoring any value attributable to the land on
which they stand) less the net amount of capital allowances
received by the person incurring the expenditure under CAA01/S405
(3).
Where the inspector is satisfied that the buildings have
permanently ceased to be used for any purpose, ask the taxpayer for
a valuation of them, excluding site value, as at the date of
acquisition of the interest in the land.
Refer the case to the District Valuer on form 453. The
valuation that will be provided by him will be of the undeveloped
market value of the land excluding the buildings that have fallen
out of use. Where there has been an earlier valuation of
undeveloped market value in which the buildings were included the
additional qualifying expenditure will be the difference
between:
and
