http://www.legislation.gov.uk/ukpga/1992/48/schedule/13Finance (No. 2) Act 1992 An Act to grant certain duties, to alter other duties, and to amend the law relating to the National Debt and the Public Revenue, and to make further provision in connection with Finance.1992-07-16texttext/xmlenStatute Law Database2026-04-23Expert Participation2026-04-01 Finance (No. 2) Act 1992ActThe Corporation Tax (Taxation of Films) (Transitional Provisions) Regulations 2007reg. 3 11reg. 1(1) SCHEDULE 1310A1This section shall apply where—aexpenditure is incurred on the construction of a building or structure (actual expenditure);bsome or all of that expenditure is incurred, or is incurred under a contract entered into, at a time when the site of the building or structure is in an enterprise zone, being a time not more than 10 years after the site was first included in the zone; andcbefore the building or structure is used, the relevant interest in it is sold.2Where this section applies—athe actual expenditure shall be left out of account for the purposes of sections 1 to 8, butbsubject to subsection (8) below, the person who buys the relevant interest shall be deemed for those purposes to have incurred, on the date when the purchase price becomes payable, expenditure on the construction of the building or structure (deemed expenditure) equal to the actual expenditure or to the net price paid by him for that interest, whichever is the less.3The deemed expenditure shall be regarded as comprising an enterprise zone element and a non-enterprise zone element.4The enterprise zone element of the deemed expenditure shall be calculated in accordance with the formula—AxBC5In subsection (4) above—A is the deemed expenditure;B is the expenditure falling within subsection (1)(b) above; andC is the actual expenditure.6The non-enterprise zone element of the deemed expenditure shall be so much (if any) of the deemed expenditure as does not comprise the enterprise zone element.7Notwithstanding the provisions of subsection (2)(b) above—athe enterprise zone element of the deemed expenditure shall be treated for the purpose only of determining entitlement to allowances as incurred at a time when the site of the building or structure is in an enterprise zone, being a time not more than 10 years after the site was first included in the zone; andbthe non-enterprise zone element of the deemed expenditure shall be treated for that purpose as not incurred, and not incurred under a contract entered into, at such a time.8Where the relevant interest in the building or structure is sold more than once before the building or structure is used, subsection (2)(b) above shall have effect only in relation to the last of those sales.9Where the actual expenditure was incurred by a person carrying on a trade which consists, in whole or in part, in the construction of buildings or structures with a view to their sale and, before the building or structure is used, he sells the relevant interest in it in the course of that trade or, as the case may be, of that part of that trade, then—aif that sale is the only sale of the relevant interest before the building or structure is used, paragraph (b) of subsection (2) above shall have effect as if the words “the actual expenditure or to" and “whichever is the less" were omitted; andbin any other case, that paragraph shall have effect as if the reference to the actual expenditure were a reference to the price paid on that sale.10This section shall have effect subject to section 17A.10B1Without prejudice to section 10A, this section shall apply where—aexpenditure is incurred on the construction of a building or structure (actual expenditure);bsome or all of that expenditure is incurred, or is incurred under a contract entered into, at a time when the site of the building or structure is in an enterprise zone, being a time not more than 10 years after the site was first included in the zone;cwhether or not there were any sales of the relevant interest in the building or structure before it was used, that interest is sold after the building or structure has been used but before the expiry of the period of two years beginning with the date on which the building or structure was first used; anddthat sale is the first such sale in that period.2Where this section applies—aany balancing allowance or charge which falls to be made on the occasion of the sale shall be so made;bthe residue of expenditure immediately after the sale (if any) shall be left out of account for the purposes of this Part;cthe person who buys the relevant interest (the purchaser) shall be deemed for the purposes of sections 1 to 8 to have incurred, on the date when the purchase price becomes payable, expenditure on the construction of the building or structure (deemed expenditure) of an amount determined in accordance with the following provisions of this section; anddin relation to the deemed expenditure, the building or structure shall be treated for the purposes of sections 1 to 8 as not having been used before the date of the sale.3The deemed expenditure shall be regarded as comprising an enterprise zone element and a non-enterprise zone element and the amount of the deemed expenditure shall accordingly be the sum of the enterprise zone element and the non-enterprise zone element.4The enterprise zone element of the deemed expenditure shall be calculated in accordance with the formula—AxBC5In subsection (4) above—A is the actual expenditure or the net price paid by the purchaser for the relevant interest, whichever is the less;B is the expenditure falling within subsection (1)(b) above; andC is the actual expenditure.6The non-enterprise zone element of the deemed expenditure shall be calculated in accordance with the formula—A-(AxBC)7In subsection (6) above—A is the actual expenditure or the net price paid by the purchaser for the relevant interest, whichever is the less;B is the expenditure falling within subsection (1)(b) above; andC is the actual expenditure.8Where the actual expenditure was incurred by a person carrying on a trade which consists, in whole or in part, in the construction of buildings or structures with a view to their sale and he sells the relevant interest in the building or structure in the course of that trade or, as the case may be, of that part of that trade, then—aif that sale is the sale falling within subsection (1)(c) above—isection 10(4) and (5) shall not apply; andiisubsection (5) above shall have effect as if for the definition of A there were substituted—"A is the net price paid by the purchaser for the relevant interest;";bif that sale is a sale which occurs before the sale falling within subsection (1)(c) above, subsections (5) and (7) above shall have effect as if the reference in the definition of A in each of those subsections to the actual expenditure were a reference to the price paid on that sale.9Notwithstanding the provisions of subsection (2)(c) above—athe enterprise zone element of the deemed expenditure shall be treated for the purpose only of determining entitlement to allowances as incurred at a time when the site of the building or structure is in an enterprise zone, being a time not more than 10 years after the site was first included in the zone; andbthe non-enterprise zone element of the deemed expenditure shall be treated for that purpose as not incurred, and not incurred under a contract entered into, at such a time.10This section shall have effect subject to section 17A.17AReferences in sections 1(1)(b), 6(1), 10A(1)(b) and 10B(1)(b) to expenditure incurred under a contract entered into at a time when the site of a building or structure is in an enterprise zone do not include any expenditure incurred under the contract if the expenditure is incurred more than 20 years after the site in question was first included in the enterprise zone.