Part 3

Industrial buildings allowances
Chapter 7

Balancing adjustments

Qualifying enterprise zone expenditure: effect of realising capital value

Exception for payments more than 7 years after agreement
330
1
Capital value is not realised for the purposes of section 328 if the payment is made more than 7 years after—
a
the agreement under which the qualifying expenditure was incurred was entered into, or
b
if that agreement was conditional, the time when the agreement became unconditional.
2
If an agreement is made to pay in respect of any event an amount of capital value which would be attributable to the subordinate interest, and—
a
the agreement is made, or if conditional becomes unconditional, before the end of the period of 7 years referred to in subsection (1), and
b
the event occurs, or any payment in consideration of the event is made, after the end of that period,
the event or payment is treated for the purposes of subsection (1) as occurring or made before the end of the 7 years.
3
Subsection (1) does not apply if arrangements—
a
under which the person entitled to the relevant interest acquired it, or
b
which were made in connection with its acquisition,
include provision which requires, or makes substantially more likely, any of the events set out in subsection (4).
4
The events are—
a
the subsequent sale of the relevant interest;
b
the subsequent grant of an interest in land out of the relevant interest;
c
any other event on which capital value attributable to the subordinate interest would be paid or treated as paid.
Pt. 3 modified (24.2.2003) by Proceeds of Crime Act 2002 (c. 29), s. 458(1), Sch. 10 para. 18 (with Sch. 10 para. 21); S.I. 2003/120, art. 2, Sch. (with arts. 3 4) (as amended (20.2.2003) by S.I. 2003/333, art. 14)
S. 45H(2) modified (with effect in accordance with s. 167 of the amending Act) by Finance Act 2003 (c. 14) , Sch. 30 para. 7
Pt. 3 modified (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 4 para. 5 ; S.I. 2004/2575 , art. 2(1) , Sch. 1
Pt. 3 modified (E.W.S.) (8.6.2005) by Railways Act 2005 (c. 14), s. 60(2), Sch. 10 para. 4; S.I. 2005/1444, art. 2(1), Sch. 1
Pt. 3 modified (8.6.2005) by Railways Act 2005 (c. 14), s. 60(2), Sch. 10 para. 15; S.I. 2005/1444, art. 2(1), Sch. 1
Pt. 3 modified (24.7.2005) by Railways Act 2005 (c. 14), s. 60(2), Sch. 10 para. 24; S.I. 2005/1909, art. 2, Sch.
Pt. 3 restricted (19.7.2007) by Finance Act 2007 (c. 11), s. 36(1)-(3), (7)
Pt. 3 omitted (with effect in relation to chargeable periods beginning on or after 1.4.2011 for corporation tax purposes and 6.4.2011 for income tax purposes in accordance with ss. 84(1)(3)(4), 85, 86 of the amending Act) by virtue of Finance Act 2008 (c. 9), s. 84(2) (with Sch. 27)
Pt. 3 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 21(1)
Pt. 3 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 38(1)