SCHEDULES

SCHEDULE 1Minor and consequential amendments

Part 2Other enactments

Capital Allowances Act 2001 (c. 2)

489

1

Amend section 125 (other qualifying purposes) as follows.

2

In subsection (3)(c) for the words from “on the occasion of each of which” to the end substitute “ on the occasion of each of which there was a change in the persons carrying on the qualifying activity in relation to which Condition A or B was met. ”

3

After subsection (3) insert—

3A

Condition A is that—

a

at least one person who carried on the qualifying activity immediately before or immediately after the change was within the charge to income tax in respect of that activity, and

b

at least one person who carried on the qualifying activity before the change continued to carry it on after the change.

3B

Condition B is that—

a

the qualifying activity was carried on in partnership both immediately before and immediately after the change,

b

a company which was within the charge to corporation tax in respect of the activity carried it on immediately before or immediately after the change, and

c

at least one company which carried the activity on before the change continued to carry it on after the change.