C1Part 2 Plant and machinery allowances
Chapter 14 Fixtures
Restrictions on amount of qualifying expenditure
186 Fixture on which an industrial buildings allowance has been made
1
This section applies if—
a
a person (“the past owner”) has at any time claimed an allowance to which he is entitled under Part 3 (industrial buildings allowances) in respect of expenditure which was or included expenditure on the provision of plant or machinery,
b
the past owner has transferred the interest which is the relevant interest for the purposes of Part 3, and
c
the current owner of the plant or machinery makes a claim in respect of expenditure (“new expenditure”) incurred—
i
on the provision of the plant or machinery, and
ii
at a time when it is a fixture in the building.
2
If the new expenditure exceeds the maximum allowable amount, the excess is to be left out of account in determining the current owner’s qualifying expenditure.
3
The maximum allowable amount is—
where—
F is the part of the consideration for the transfer by the past owner that is attributable to the fixture,
T is the total consideration for that transfer, and
R is the residue of qualifying expenditure attributable to the relevant interest immediately after that transfer, calculated on the assumption that the transfer was a sale of the relevant interest.
4
For the purposes of this section the current owner of the plant or machinery is—
a
the person to whom the past owner transferred the relevant interest, or
b
any person who is subsequently treated as the owner of the plant or machinery.
5
In this section “building” and “residue of qualifying expenditure” have the same meaning as in Part 3.
Pt. 2 (ss. 11-270) modified (prosp.) by Proceeds of Crime Act 2002 (c. 29), ss. 448, 458(1), Sch. 10 para. 12 (with para. 17(1))