Capital Allowances Act 2001 (c. 2)

Schedules

Schedule 2 U.K. Consequential amendments

The Income and Corporation Taxes Act 1988 (c. 1) U.K.

F1 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Sch. 2 para. 11 repealed (with effect in accordance with Sch. 26 Pt. 3(12) Note of the amending Act) by Finance Act 2006 (c. 25), Sch. 26 Pt. 3(12)

F2 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F2 Sch. 2 para. 12 repealed (with effect in accordance with Sch. 26 Pt. 3(12) Note of the amending Act) by Finance Act 2006 (c. 25), Sch. 26 Pt. 3(12)

13 In subsection (7), omit “and section 29 of the 1990 Act (provisions relating to furnished holiday accommodation)”.

F3 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F3 Sch. 2 para. 14 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F4 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F4 Sch. 2 para. 15 repealed (with effect in accordance with s. 42 of the amending Act) by Finance Act 2004 (c. 12), Sch. 42 Pt. 2(3)

F5 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F5 Sch. 2 paras. 16-20 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F5 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F5 Sch. 2 paras. 16-20 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F5 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F5 Sch. 2 paras. 16-20 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F5 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F5 Sch. 2 paras. 16-20 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F5 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F5 Sch. 2 paras. 16-20 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

Section 116 (arrangements for transferring relief) U.K.

21 In subsection (4), for paragraph (b) substitute—

“(b) any allowance to be given effect under Part 2 of the Capital Allowances Act in respect of a special leasing of plant or machinery were an allowance to be given effect in calculating the profits of that trade.”

F6 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F6 Sch. 2 para. 22 repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 3 Pt. 1 (with Sch. 2)

Section 118 (restriction on relief: companies) U.K.

23 (1) In subsection (1), omit—

(a) “or allowed” (in each place),

(b) “or section 145 of the 1990 Act”, and

(c) paragraph (b) and the word “or” before it.

(2) In subsection (2), in the definition of “the aggregate amount”, omit—

(a) “or allowed”,

(b) “or section 145 of the 1990 Act”, and

(c) paragraph (b) and the word “or” before it.

(3) In relation to any chargeable period to which this Act applies, the repeals made by sub-paragraph (2) are not to exclude from a company’s aggregate amount for the purposes of section 118 of ICTA any amounts included in the company’s aggregate amount at any time before the chargeable periods to which this Act applies.

F7 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F7 Sch. 2 para. 25 repealed (6.4.2003) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 8 Pt. 1 (with Sch. 7)

F7 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F7 Sch. 2 para. 25 repealed (6.4.2003) by Income Tax (Earnings and Pensions) Act 2003 (c. 1), s. 723, Sch. 8 Pt. 1 (with Sch. 7)

Section 343 (company reconstructions without a change of ownership) U.K.

26 In subsection (2), for “the Capital Allowances Acts” substitute “ the Capital Allowances Act (including enactments which under this Act are to be treated as contained in that Act) ”.

F8 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F8 Sch. 2 para. 27 repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 3 Pt. 1 (with Sch. 2)

F9 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F9 Sch. 2 para. 28 repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 3 Pt. 1 (with Sch. 2)

Section 384 (restrictions on right of set-off) U.K.

29 F10 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) In subsection (10), omit the words following paragraph (b) F11 ...

Textual Amendments

F10 Sch. 2 para. 29(1) repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 3 Pt. 1 (with Sch. 2)

F11 Words in Sch. 2 para. 29(2) repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 3 Pt. 1 (with Sch. 2)

F12 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F12 Sch. 2 para. 30 repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 3 Pt. 1 (with Sch. 2)

F13 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F13 Sch. 2 para. 31 repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 3 Pt. 1 (with Sch. 2)

Section 393A (losses: set off against profits of the same, or an earlier, accounting period) U.K.

32 (1) In subsection (2C)(b), for “section 62A of the 1990 Act (demolition costs relating to offshore machinery or plant)” substitute “ section 164 of the Capital Allowances Act (abandonment expenditure incurred before cessation of ring fence trade) ”.

(2) Omit subsections (5) and (6).

(3) In subsection (11)—

(a) in paragraph (a), for “section 62B of the 1990 Act (post-cessation abandonment expenditure related to offshore machinery or plant)” substitute “ section 165 of the Capital Allowances Act (abandonment expenditure within 3 years of ceasing ring fence trade) ”, and

(b) in paragraph (b), for “section 109 of that Act (restoration expenditure incurred after cessation of trade of mineral extraction)” substitute “ section 416 of that Act (expenditure on restoration within 3 years of ceasing to trade) ” and for “the last day on which it carried on the trade” substitute “ the last day of trading ”.

(4) In subsection (12), for “section 62A of the 1990 Act” substitute “ section 162 of the Capital Allowances Act ”.

Section 395 (leasing contracts and company reconstructions) U.K.

33 In subsection (1)—

(a) in paragraph (a), for “machinery or plant” substitute “ plant or machinery ”, and

(b) in paragraph (c), for “within the meaning of Part II of the 1990 Act” substitute “ within the meaning of Part 2 of the Capital Allowances Act ”.

Section 397 (restriction of relief in case of farming and market gardening) U.K.

34 (1) In subsection (5)—

(a) omit the definition of “basis year”, and

(b) in the definition of “chargeable period” omit the words from “or any basis period” to the end of the definition.

(2) Omit subsection (6).

(3) In subsection (7), for the words from “but so that” to the end of the subsection substitute “but disregarding—

(a) any allowance or charge under the Capital Allowances Act (including enactments which under this Act are to be treated as contained in that Act); and

(b) any provision of that Act requiring allowances and charges to be treated as expenses and receipts of the trade”.

Section 400 (write-off of government investment) U.K.

35 (1) In subsection (2)(c), for “section 145(2) of the 1990 Act” substitute “ section 260(2) of the Capital Allowances Act ”.

(2) In subsection (4), for “section 145(3) of the 1990 Act” substitute “ section 260(3) of the Capital Allowances Act ”.

(3) In subsection (6), for “section 153 of the 1990 Act” substitute “ section 532 or 536 of the Capital Allowances Act ”.

Section 403ZB (amounts eligible for group relief: excess capital allowances) U.K.

36 In subsection (1), for the words from “the surrender period” to the end of the subsection substitute “ for the surrender period to the extent that they are to be given effect under section 260 of the Capital Allowances Act (special leasing: excess allowance). ”

Section 407 (relationship between group relief and other relief) U.K.

37 (1) In subsection (1)(b), for “section 145(3) of the 1990 Act” substitute “ section 260(3) of the Capital Allowances Act ”.

(2) In subsection (2)(b), for “section 145(3) of the 1990 Act” substitute “ section 260(3) of the Capital Allowances Act ”.

Section 411 (exclusion of double allowance) U.K.

38 In subsection (10)—

(a) omit “Without prejudice to the provisions of section 161(5) of the 1990 Act”, and

(b) for “that Act, except Parts III and VII” substitute “ the Capital Allowances Act, except Parts 6 and 10 ”.

Sections 434D and 434E (capital allowances: management assets; investment assets) U.K.

39 Omit sections 434D and 434E.

F14 40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F14 Sch. 2 para. 40 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

Section 492 (treatment of oil extraction activities etc. for tax purposes) U.K.

41 (1) In subsection (5), for “section 141 of the 1990 Act” substitute “ section 258 of the Capital Allowances Act ”.

(2) In subsection (6), for “section 145 of the 1990 Act” substitute “ section 259 or 260 of the Capital Allowances Act ”.

(3) In subsection (7), for “section 145(1) of the 1990 Act” substitute “ section 259 of the Capital Allowances Act ”.

Section 495 (regional development grants) U.K.

42 (1) In subsection (1), for “Part I, II or VII of the 1990 Act (capital allowances relating to industrial buildings, machinery or plant and research and development)” substitute “ Part 2, 3 or 6 of the Capital Allowances Act (capital allowances relating to plant and machinery, industrial buildings or research and development) ”.

(2) In subsection (3), for “Part I, II or VII of the 1990 Act” substitute “ Part 2, 3 or 6 of the Capital Allowances Act ”.

(3) In subsection (7), in the definition of “regional development grant” for the words from “means” to the end substitute “ means a grant falling within section 534(1) of the Capital Allowances Act ”.

Section 518 (harbour reorganisation schemes) U.K.

43 In subsection (4), for “the provisions of the Capital Allowances Acts” substitute “ the Capital Allowances Act (including enactments which under this Act are to be treated as contained in that Act) ”.

Sections 520 to 523 (patents) U.K.

44 Omit sections 520 to 523.

F15 45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F15 Sch. 2 para. 45 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F16 46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F16 Sch. 2 para. 46 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

Section 530 (disposal of know-how) U.K.

47 Omit section 530.

F17 48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F17 Sch. 2 paras. 48-52 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F17 49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F17 Sch. 2 paras. 48-52 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F17 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F17 Sch. 2 paras. 48-52 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F17 51 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F17 Sch. 2 paras. 48-52 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F17 52 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F17 Sch. 2 paras. 48-52 repealed (with effect in accordance with s. 1329(1) of the amending Act) by Corporation Tax Act 2009 (c. 4), s. 1329(1), Sch. 3 Pt. 1 (with Sch. 2 Pts. 1, 2)

F18 53 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F18 Sch. 2 para. 53 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3 (with Sch. 36)

F19 54 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F19 Sch. 2 para. 54 repealed (6.4.2006) by Finance Act 2004 (c. 12), Sch. 42 Pt. 3 (with Sch. 36)

Section 768 (change in ownership of company: disallowance of trading losses) U.K.

55 In subsection (6), for “section 161(6) of the 1990 Act” substitute “ section 577(3) of the Capital Allowances Act ”.

Section 768B (change in ownership of investment company: deductions generally) U.K.

56 In subsection (8), for “section 28 of the 1990 Act” substitute “ section 253 of the Capital Allowances Act ”.

Section 781 (assets leased to traders and others) U.K.

57 In subsection (9), for “section 60(2) of the 1990 Act” substitute “ section 68 of the Capital Allowances Act ”.

F20 58 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F20 Sch. 2 para. 58 repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 3 Pt. 1 (with Sch. 2)

Section 831 (interpretation of Act) U.K.

59 Section 831(3) continues to have effect with the addition of the definition of “the 1990 Act” (an amendment originally made by paragraph 8(35) of Schedule 1 to the Capital Allowances Act 1990 (c. 1)).

Section 832 (interpretation of the Tax Acts) U.K.

60 In subsection (1)—

(a) in the definition of “capital allowance”, for “the Capital Allowances Acts” substitute “ the Capital Allowances Act (including enactments which under this Act are to be treated as contained in that Act) ”, and

(b) for the definition of “the Capital Allowances Acts” substitute—

““the Capital Allowances Act” means the Capital Allowances Act 2001;”.

Section 834 (interpretation of the Corporation Tax Acts) U.K.

61 In subsection (2), omit “and also for sections 144 and 145 of the 1990 Act”.

F21 62 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F21 Sch. 2 para. 62 repealed (6.4.2007) by Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 3 Pt. 1 (with Sch. 2)

Schedule 18 (group relief) U.K.

63 In paragraph 1(6)—

(a) in paragraph (b)(i) and (ii), for “Part II of the 1990 Act” substitute “ Part 2 of the Capital Allowances Act ” and for “machinery or plant” substitute “ plant or machinery ”, and

(b) in paragraph (b)(iii), for “section 137 of the 1990 Act” substitute “ Chapter 3 of Part 6 of the Capital Allowances Act ” and for “Part VII” substitute “ Part 6 ”.

Schedule 19AC (modification of Act in relation to overseas life insurance companies) U.K.

64 (1) Omit paragraph 9C (application of section 434D(4) in relation to overseas life insurance company).

F22 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F22 Sch. 2 para. 64(2) repealed (with effect in accordance with reg. 1 of the amending S.I.) by The Overseas Life Insurance Companies Regulations 2006 (S.I. 2006/3271), reg. 1, Sch. Pt. 1

Schedule 21 (tax relief in connection with schemes for rationalising industry and other redundancy schemes) U.K.

65 In paragraph 6(1)(a), for “Part I or II of the 1990 Act in taxing the trade” substitute “ Part 2 or 3 of the Capital Allowances Act in calculating the profits of a trade ”.

Schedule 24 (assumptions for calculating chargeable profits, creditable tax and corresponding United Kingdom tax of foreign companies) U.K.

66 (1) In paragraph 10(1)—

(a) for “machinery or plant for the purposes of its trade, that machinery or plant shall be assumed, for the purposes of Part II of the 1990 Act” substitute “ plant or machinery for the purposes of its trade, that plant or machinery shall be assumed, for the purposes of Part 2 of the Capital Allowances Act ”, and

(b) for “section 81 of that Act (expenditure treated as equivalent to market value at the time the machinery or plant is brought into use)” substitute “ section 13 of that Act (use for qualifying activity of plant or machinery provided for other purposes) ”.

(2) In paragraph 10(2), for “Part II of the 1990 Act” substitute “ Part 2 of the Capital Allowances Act ”.

F23 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F23 Sch. 2 para. 66(3) repealed (7.4.2005) by Finance Act 2005 (c. 7), Sch. 11 Pt. 2(6)

Schedule 28A (change in ownership of investment company: deductions) U.K.

67 (1) In paragraph 6(d), for “section 28 of the 1990 Act” substitute “ section 253 of the Capital Allowances Act ”.

(2) In paragraph 13(1)(e), for “section 28 of the 1990 Act” substitute “ section 253 of the Capital Allowances Act ”.

Schedule 28AA (provision not at arms’ length) U.K.

68 In paragraph 13(a), for “the 1990 Act” substitute “ the Capital Allowances Act ”.