SCHEDULES

SCHEDULE 14Capital allowances on long-life assets

Consequential amendments

3

In section 37(1), after paragraph (b) (election to treat assets as short-life assets), there shall be inserted the following paragraph—

“(ba)

the expenditure is not expenditure to which Chapter IVA of this Part applies; and”.

4

For subsection (6) of section 41 (cases where the provision for separate pools for leased assets and inexpensive cars do not apply) there shall be substituted the following subsection—

“(6)

This section does not apply—

(a)

to machinery or plant in relation to which sections 24, 25 and 26 apply in accordance with section 34, 79 or 80; or

(b)

to machinery or plant the expenditure on which is expenditure to which Chapter IVA of this Part applies.”

5

In section 42(2) (rate of writing down assets leased outside the United Kingdom), after “above” there shall be inserted “which is not expenditure to which Chapter IVA of this Part applies”.

6

In section 43(3) (apportionments in leasing cases), after “26,” there shall be inserted “38E,”.

7

In section 46(7)(c) (leasing of ships to non-residents), for “section 41” there shall be inserted “whichever of sections 38E and 41 is applicable”.

8

In section 50(3) (interpretation of Chapter V), in the definition of “normal writing down allowance”, for “section 42(2)” there shall be substituted “sections 38F(1) and 42(2)”.

9

In section 77(8) (provisions that do not apply where an election is made in the case of a connected person succeeding to a trade), after “Sections” there shall be inserted “38G,”.