Sales etc. and succession to trades between connected persons
16(1)In paragraph 13 of Schedule 8 to the Finance Act 1971 (successions to trades between connected persons), after sub-paragraph (3) there shall be inserted—
“(3A)Section 48(1) of the [1968 c. 3.] Capital Allowances Act 1968 and section 65(5) of the Finance Act 1980 shall not apply in any case where an election is made under this paragraph.”
(2)This paragraph shall have effect in relation to successions occurring on or after the day on which this Act is passed.
17In section 68(4) of the [1972 c. 41.] Finance Act 1972 (which modifies the restrictions on allowances imposed by paragraph 3 of Schedule 8 to the [1972 c. 41.] Finance Act 1971 in the case of sales etc. between connected persons) for paragraphs (b) and (c) there shall be substituted—
“(b)where capital expenditure was incurred by the seller on the provision of the machinery or plant, the amount of that expenditure;
(c)where capital expenditure was incurred by any person connected with the seller on the provision of the machinery or plant, the amount of the expenditure incurred by that person.”