Finance Act 2008 (c. 9)

SCHEDULES

SCHEDULE 27 U.K. Abolition of allowances: consequential amendments and savings

Part 1 U.K. Consequential amendments

CAA 2001 U.K.

1 U.K. CAA 2001 is amended as follows.

2 U.K. In section 1 (capital allowances), omit—

(a) subsection (2)(b) and (c) (entitlement to industrial and agricultural buildings allowances), and

(b) in subsection (3) “, industrial buildings or agricultural buildings,”.

3 U.K. In section 2(3) (general means of giving effect to capital allowances), omit—

(a) “sections 352 to 355 (industrial buildings allowances);”, and

(b) “sections 391 and 392 (agricultural buildings allowances);”.

4 U.K. In section 3 (claims for capital allowances), omit subsections (4)(b) and (5)(b).

5 (1) Section 186 (fixture on which an industrial buildings allowance has been made) is amended as follows. U.K.

(2) In subsection (1)(a) and (b), for “is” substitute “ was ”.

(3) In subsection (3)—

(a) at the beginning insert “ If the total consideration for the transfer by the past owner exceeds R, ”, and

(b) in the definition of “R”—

(i) after “expenditure” insert “ which would have been ”, and

(ii) at the end insert “ , had the time immediately after the transfer fallen immediately before the repeal of Part 3 by section 84 of the Finance Act 2008. ”

(4) After that subsection insert—

“(3A) Where subsection (3) does not apply, the maximum allowable amount is the part of the consideration for the transfer by the past owner that is attributable to the fixture.”

(5) In subsection (5), for “in Part 3” substitute “ for the purposes of Part 3 immediately before its repeal by section 84 of the Finance Act 2008. ”

6 U.K. In section 443(3) (disposal values and disposal events), omit “or 3” and “and industrial building allowances”.

7 U.K. In section 448(3) (additional VAT rebate generates disposal value), omit “or 3” and “and industrial buildings allowances”.

8 U.K. In section 537 (contribution allowances), omit “, 3, 4” in—

(a) subsection (1),

(b) subsection (2)(b)(ii), and

(c) the heading.

9 U.K. Omit section 539 (contribution allowances: industrial buildings).

10 U.K. Omit section 540 (contribution allowances: agricultural buildings).

11 U.K. In section 542(1) (effect of transfers of trade on contribution allowances), for “Parts 3, 4 and 5” substitute “ Part 5 ”.

12 U.K. In section 546 (introduction to Chapter 2 of Part 12), omit paragraph (b).

13 U.K. In section 564 (application of procedure in section 563)—

(a) in subsection (1), for “3” substitute “ 3A ”, and

(b) omit subsection (3).

14 U.K. In section 567(1) (sales treated as for alternative amounts), omit “3,” and “4,”.

15 U.K. In section 569 (election to treat sale as being for an alternative amount), omit—

(a) in subsections (3)(a) and (5)(a), “3 or”, and

(b) in subsection (5), “319 (building not an industrial building, etc throughout) or”.

16 U.K. In section 570 (elections: supplementary), omit—

(a) in subsection (1), “, 4”, and

(b) in subsection (3), “3,”.

17 U.K. In section 570A(1) (avoidance affecting proceeds of balancing event), omit “3,” and “4,”.

18 U.K. In section 573(1) (transfers treated as sales), omit “3,” and “4,”.

19 (1) Part 2 of Schedule 1 (index of defined expressions) is amended as follows. U.K.

(2) Omit the entries relating to the following defined expressions—

• “adjusted net cost (in Chapter 7 of Part 3)”,

• “agricultural building”,

• “balancing adjustment (in Part 3)”,

• “balancing adjustment (in Part 4)”,

• “balancing event (in Part 3)”,

• “balancing event (in Part 4)”,

• “building (in Part 3_includes structure)”,

• “commercial building (in Part 3, in relation to qualifying enterprise zone expenditure)”,

• “developer, carrying on a trade as (in Chapter 4 of Part 3)”,

• “enterprise zone (in Part 3)”,

• “expenditure on the construction of a building (in Part 3)”,

• “expenditure on the construction of a building (in Part 4)”,

• “highway concession (in Chapter 9 of Part 3)”,

• “husbandry (in Part 4)”,

• “industrial building”,

• “lease and related expressions (in Part 3)”,

• “lease and related expressions (in Part 4)”,

• “proceeds from a balancing event (in Part 3)”,

• “proceeds from a balancing event (in Part 4)”,

• “qualifying enterprise zone expenditure (in Part 3)”,

• “qualifying hotel (in Part 3)”,

• “qualifying trade (in Part 3)”,

• “related agricultural land (in Part 4)”,

• “relevant interest (in Part 3)”,

• “relevant interest (in Part 4)”,

• “residue of qualifying expenditure (in Part 3)”,

• “residue of qualifying expenditure (in Part 4)”, and

• “writing-down period (in Part 4)”.

(3) In the entry relating to “sale, transfers under Parts 3, 3A, 4, 4A and 10 treated as”, omit “3,” and “4,”.

20 U.K. In Schedule 3 (transitional provision and savings), omit—

(a) paragraphs 56 to 83, and

(b) paragraph 110.