Finance Act 1995

29 (1) In section 9 of the Capital Allowances Act 1990 (manner of making industrial buildings allowance), in subsection (1), for “mentioned in subsections (2) to (7) below” there shall be substituted “where subsections (2) to (7) below apply”.

(2) After that subsection there shall be inserted the following subsections—

“(1A) In the case of an allowance or charge made to or on a person whose interest in the building or structure is subject to a lease at the relevant time, subsection (1) above shall have effect for the purposes of income tax—

(a) as if any Schedule A business carried on by that person at any time in the chargeable period for which the allowance or charge is made were the trade in the taxing of which the allowance or charge were to be made; or

(b) where that person is not carrying on such a business at any time in that period, as if he were carrying on such a business and the business were the trade in the taxing of which the allowance or charge is to be made;

and this Act shall have effect in each case as if the Schedule A business which is deemed to be a trade for the purposes of this subsection were a trade set up and commenced on or after 6th April 1995.

(1B) In subsection (1A) above “the relevant time”—

(a) in relation to an initial allowance, means the time when the expenditure is incurred or any subsequent time before the building or structure is used for any purpose;

(b) in relation to a writing-down allowance, means the end of the chargeable period for which the allowance is made; and

(c) in relation to a balancing allowance or charge, means the time immediately before the event giving rise to the allowance or charge.”

(3) At the beginning of subsections (2), (3), (4) and (6) of that section there shall be inserted, in each case, the words “For the purposes of corporation tax”; and in subsection (6), paragraph (a) and, in paragraph (b), the words “if it is a charge to corporation tax” shall be omitted.