Part I reviews the provisions under the Finance Act 1986 s56 relating to capital allowances for the construction of farm and forestry buildings. Discusses the requirements necessary to qualify for agricultural buildings allowances, referring to relevant case law throughout. Includes the statutory definitions of "major interest" and "relevant interest", explaining that allowances may only be claimed by someone who has a major interest in agricultural or forestry land. Concludes by looking at regulations governing the transfer of the relevant interest to another party. Part II continues the discussion on transferring the relevant interest, concentrating on the right to balancing adjustments under the new rules Illustrates with examples. Notes interaction with industrial buildings allowances , ie where expenditure occurs on a foreign plantation, or where there is a trade performing certain agricultural activities.