Search Legislation

Finance Act 2001

Status:

This is the original version (as it was originally enacted).

Ring fence trades: special allowance for pre-cessation abandonment expenditure

2(1)Section 62A of the Capital Allowances Act 1990 (c. 1) (special allowance for costs of demolition of offshore machinery or plant) is amended as follows.

(2)In subsection (1) (section applies to expenditure that would otherwise fall within section 62(1)(b)), after “section 62(1)(b)” insert “or 62AA(3)”.

(3)In subsection (1)(c)—

(a)for “the demolition of” substitute “decommissioning”; and

(b)after “which is or forms part of” insert “, or when last in use for the purposes of the trade was or formed part of,”.

(4)In subsection (3)(a), for “demolition” (in both places) substitute “decommissioning”.

(5)After subsection (3) insert—

(3A)In this section “decommissioning”, in relation to any machinery or plant, means—

(a)demolishing the machinery or plant,

(b)preserving the machinery or plant pending its reuse or demolition,

(c)preparing the machinery or plant for reuse, or

(d)arranging for the reuse of the machinery or plant.

(3B)For the purposes of this section—

(a)in determining whether expenditure is incurred on preserving machinery or plant pending its reuse or demolition, it is immaterial whether the machinery or plant is reused, is demolished or is partly reused and partly demolished; and

(b)in determining whether expenditure is incurred on preparing machinery or plant for reuse, or on arranging for the reuse of machinery or plant, it is immaterial whether the machinery or plant is in fact reused..

(6)For subsection (4) (entitlement to special allowance) substitute—

(4)If the person incurring any abandonment expenditure so elects, for the chargeable period in which that expenditure is incurred there shall be made to that person an allowance equal to so much of the abandonment expenditure to which the election relates as is incurred in that period.

(4A)If a person makes such an election, neither of sections 62(1)(b) and 62AA(3) applies.

(4B)If machinery or plant is demolished, the total of any allowances under subsection (4) above in respect of expenditure on the decommissioning of the machinery or plant is reduced by the amount of any moneys received for the remains of the machinery or plant.

(4C)Effect is given to subsection (4B) above by setting the amount (until wholly utilised)—

  • first, against any allowance under subsection (4) above for the chargeable period in which the amount is received (as previously reduced in giving effect to subsection (4B));

  • second, against allowances under that subsection for earlier chargeable periods (as so reduced and taking later such periods before earlier ones); and

  • third, against allowances under that subsection for later chargeable periods (as so reduced and taking earlier such periods before later ones)..

(7)In subsection (5)(a) (election must specify amounts received for remains), for “subsection (4)(a)” substitute “subsection (4B)”.

(8)In the sidenote, for “demolition” substitute “decommissioning”.

Back to top

Options/Help

Print Options

You have chosen to open The Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act as a PDF

The Whole Act you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open the Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open Schedules only

The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made):The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources