Finance Act 1970

15 Increase in initial allowances for industrial buildings

(1) In relation to capital expenditure incurred, at any time within the period beginning on 6th April 1970 and ending on 5th April 1972, on the construction of a building or structure in such circumstances that a person becomes entitled to an initial allowance within the meaning of section 1 of the [1968 c. 3.] Capital Allowances Act 1968, for the words " three-twentieths " in subsection (2) of that section (the rate of allowance) there shall be substituted—

(a) in a case falling within subsection (2) below, the words " two-fifths " ; and

(b) in any other case, the words " three-tenths ".

(2) The higher rate of initial allowance specified in subsection (1)(a) above applies if the building or structure concerned is situated in an area which is a development area or an intermediate area—

(a) on the date on which the capital expenditure is incurred ; or

(b) if the contract under which the capital expenditure is incurred was entered into on or after 6th April 1970, on the date on which that contract was entered into;

or if the building or structure concerned is situated in Northern Ireland.

(3) For the purposes of subsection (2) above—

• " development area " has the same meaning as in Part I of the [1960 c. 18.] Local Employment Act 1960; and

• " intermediate area " has the same meaning as in the [1970 c. 7.] Local Employment Act 1970.

(4) Expenditure shall not be treated for the purposes of this section as having been incurred after the date on which it was in fact incurred by reason only of section 1(6) of the Capital Allowances Act 1968 (expenditure incurred before trade began) or section 5(1) of that Act (purchase of unused buildings and structures).