Part 2: Capital Allowances
General decommissioning expenditure
5.Paragraph 5 provides for an amendment to section 163 of the Capital Allowances Act 2001 (CAA), extending the meaning of “general decommissioning expenditure” to include expenditure incurred in decommissioning assets used in a change of use trade, where those assets had originally been brought into use for the purposes of a ring fence trade.
6.Sub-paragraph (3) amends subsection (4ZA) by replacing paragraphs (a) and (b) with new paragraphs, which determine the amount by which general decommissioning expenditure is to be reduced where the decommissioned plant and machinery was not brought into use wholly for a qualifying purpose or had, at any time since it was brought into use, not been used for qualifying purposes. .
7.Paragraph 6 amends section 165(4A) of CAA 2001 (general decommissioning expenditure after ceasing ring fence trade) by substituting “general decommissioning expenditure” for “abandonment expenditure”
Commencement
8.Paragraph 7 deals with the commencement dates of legislation within this Part.
