PART 3

Income tax and corporation tax

Property business deductions

Property business deductions: wear and tear allowance
74
1
In Part 3 of ITTOIA 2005 (property income)—
a
omit sections 308A to 308C and the italic heading before section 308A (wear and tear allowance), and
b
in section 327 (capital allowances and loss relief: UK property business), in subsection (2), omit paragraph (c) and the “or” before that paragraph.
2
The amendments made by subsection (1) have effect for the tax year 2016-17 and subsequent tax years.
3
In Part 4 of CTA 2009 (property income)—
a
omit sections 248A to 248C of CTA 2009 and the italic heading before section 248A (wear and tear allowance), and
b
in section 269 (capital allowances and loss relief: UK property business), in subsection (2), omit paragraph (c) and the “or” before that paragraph.
4
The amendments made by subsection (3) have effect in relation to accounting periods beginning on or after 1 April 2016.
5
For the purposes of subsection (3), where a company has an accounting period beginning before 1 April 2016 and ending on or after that date (“the straddling period”)—
a
so much of the straddling period as falls before 1 April 2016, and so much of that period as falls on or after that date, are treated as separate accounting periods, and
b
any amounts brought into account for the purposes of calculating for corporation tax purposes the profits of a property business for the straddling period are apportioned to the two separate accounting periods in accordance with section 1172 of CTA 2010 (time basis) or, if that method produces a result that is unjust or unreasonable, on a just and reasonable basis.