Where a person has let a building or structure and is receiving rental income from it, capital allowances may only be set against the rental income from the building or structure itself. This restriction is analogous to one restricting the use of section 23 type relief. Currently, the rate at which normal capital allowances for industrial buildings is given is 4% per annum over 25 years. Under the various property and area based tax incentive schemes, this period can be shortened to seven or ten years, and in some cases to periods greater than ten years but less than 25 years. Obviously, the annual rate of allowances is higher when the period is shorter, and these are commonly known as accelerated capital allowances.

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