SCHEDULE 27Abolition of allowances: consequential amendments and savings

Part 1Consequential amendments

CAA 2001

1CAA 2001 is amended as follows.

2In section 1 (capital allowances), omit—

(a)subsection (2)(b) and (c) (entitlement to industrial and agricultural buildings allowances), and

(b)in subsection (3) “, industrial buildings or agricultural buildings,”.

3In section 2(3) (general means of giving effect to capital allowances), omit—

(a)“sections 352 to 355 (industrial buildings allowances);”, and

(b)“sections 391 and 392 (agricultural buildings allowances);”.

4In section 3 (claims for capital allowances), omit subsections (4)(b) and (5)(b).

5(1)Section 186 (fixture on which an industrial buildings allowance has been made) is amended as follows.

(2)In subsection (1)(a) and (b), for “is” substitute “was”.

(3)In subsection (3)—

(a)at the beginning insert “If the total consideration for the transfer by the past owner exceeds R,”, and

(b)in the definition of “R”—

(i)after “expenditure” insert “which would have been”, and

(ii)at the end insert “, had the time immediately after the transfer fallen immediately before the repeal of Part 3 by section 84 of the Finance Act 2008.”

(4)After that subsection insert—

(3A)Where subsection (3) does not apply, the maximum allowable amount is the part of the consideration for the transfer by the past owner that is attributable to the fixture.

(5)In subsection (5), for “in Part 3” substitute “for the purposes of Part 3 immediately before its repeal by section 84 of the Finance Act 2008.”

6In section 443(3) (disposal values and disposal events), omit “or 3” and “and industrial building allowances”.

7In section 448(3) (additional VAT rebate generates disposal value), omit “or 3” and “and industrial buildings allowances”.

8In section 537 (contribution allowances), omit “, 3, 4” in—

(a)subsection (1),

(b)subsection (2)(b)(ii), and

(c)the heading.

9Omit section 539 (contribution allowances: industrial buildings).

10Omit section 540 (contribution allowances: agricultural buildings).

11In section 542(1) (effect of transfers of trade on contribution allowances), for “Parts 3, 4 and 5” substitute “Part 5”.

12In section 546 (introduction to Chapter 2 of Part 12), omit paragraph (b).

13In section 564 (application of procedure in section 563)—

(a)in subsection (1), for “3” substitute “3A”, and

(b)omit subsection (3).

14In section 567(1) (sales treated as for alternative amounts), omit “3,” and “4,”.

15In section 569 (election to treat sale as being for an alternative amount), omit—

(a)in subsections (3)(a) and (5)(a), “3 or”, and

(b)in subsection (5), “319 (building not an industrial building, etc throughout) or”.

16In section 570 (elections: supplementary), omit—

(a)in subsection (1), “, 4”, and

(b)in subsection (3), “3,”.

17In section 570A(1) (avoidance affecting proceeds of balancing event), omit “3,” and “4,”.

18In section 573(1) (transfers treated as sales), omit “3,” and “4,”.

19(1)Part 2 of Schedule 1 (index of defined expressions) is amended as follows.

(2)Omit the entries relating to the following defined expressions—

(3)In the entry relating to “sale, transfers under Parts 3, 3A, 4, 4A and 10 treated as”, omit “3,” and “4,”.

20In Schedule 3 (transitional provision and savings), omit—

(a)paragraphs 56 to 83, and

(b)paragraph 110.


21In section 495 of ICTA (regional development grants), omit—

(a)in subsection (1)(b), “, 3” and “, industrial buildings”, and

(b)in subsection (3)(b), “, 3”.

FA 2000

22In Schedule 22 (tonnage tax), omit paragraphs 84 and 86.

FA 2001

23(1)FA 2001 is amended as follows.

(2)In Schedule 19 (insertion of Part 4A of CAA 2001: consequential amendments), omit paragraph 4.

(3)In Schedule 21 (capital allowances: minor amendments), omit paragraphs 5 and 6.

Proceeds of Crime Act 2002 (c. 29)

24In Schedule 10 to the Proceeds of Crime Act 2002 (tax consequences of transfers under Part 5 of that Act), omit paragraphs 18 to 21.

Energy Act 2004 (c. 20)

25In Schedule 4 to the Energy Act 2004 (tax exemption for NDA and NDA companies), omit paragraphs 5 and 6.


26In Schedule 1 to ITTOIA 2005 (consequential amendments), omit paragraphs 552 to 558.

ITA 2007

27(1)ITA 2007 is amended as follows.

(2)In section 24(1)(b) (reliefs deductible at Step 2), omit the entry relating to Part 3 of CAA 2001.

(3)In section 25(3) (reliefs deductible at Steps 2 and 3: supplementary), omit the entry relating to section 355 of that Act.

(4)In Schedule 1 (minor and consequential amendments), omit paragraph 406.

FA 2007

28In FA 2007, omit section 36 (industrial and agricultural buildings allowances: balancing adjustments).

FA 2008

29In FA 2008, omit—

(a)section 85 (phasing out of allowances before abolition),

(b)section 86 (qualifying enterprise zone expenditure: transitional provision), and

(c)section 87 (which inserts section 313A of CAA 2001).


30(1)Subject to sub-paragraph (2), this Part of this Schedule has effect in relation to chargeable periods (within the meaning of CAA 2001) beginning on or after—

(a)for corporation tax purposes, 1 April 2011, and

(b)for income tax purposes, 6 April 2011.

(2)The amendments made by paragraph 5 have effect in relation to a transfer by the past owner (within the meaning of section 186 of CAA 2001) in such a chargeable period.