Buildings or structures sold by exempt bodies

Finance Act 1988

1988 c. 39 - continued

Part III - Income Tax, Corporation Tax and Capital Gains Tax - continued

Chapter III

Capital Allowances

Buildings or structures sold by exempt bodies.

90.—(1) At the end of section 4 of the [1968 c. 3.] Capital Allowances Act 1968 (writing off of expenditure and meaning of "residue of expenditure") there shall be added—

"(13) In subsection (12) above references to the Crown shall include references to any person who is not within the charge to tax in the United Kingdom."

(2) This section shall have effect in relation to sales occurring after the passing of this Act.

Sales without change of control.

        91.—(1)  Paragraph 4 of Schedule 7 to the Capital Allowances Act 1968 (sales without change of control) shall be amended as follows.

    (2)  -paragraph (1), for the words "by notice in writing to the inspector so elect" there shall be substituted the words "so elect by notice in writing given to the inspector not later than two years after the sale".

    (3)  After sub-paragraph (3) there shall be inserted—

"(4) All such assessments and adjustments of assessments shall be made as may be necessary to give effect to this paragraph."

(4) This section shall have effect in relation to sales occurring after the passing of this Act.

Successions to trades between connected persons.

92.—(1) For paragraph 13 of Schedule 8 to the [1971 c. 68.] Finance Act 1971 (successions to trades between connected persons) there shall be substituted—

"13.—(1) Where at any time a person ("the successor") succeeds to a trade which was until that time carried on by another person ("the predecessor") and—

(a) the two persons are connected with each other;

(b) each of them is within the charge to tax in the United Kingdom on the profits of the trade; and

(c) the successor is not a dual resident investing company within the meaning of section 404 of the Taxes Act,those persons may, by notice in writing given to the inspector not later than two years after that time, elect that the provisions of this paragraph shall have effect.

(2) In the event of such an election—

(i) immediately before the time when the succession took place, belonged to the predecessor and was in use for the purposes of the trade; and

(ii) immediately after that time, belonged to the successor and was in use for those purposes,

(b) allowances and charges shall be made under that Chapter to or on the successor as if everything done to or by the predecessor had been done to or by the successor. (3) The predecessor and the successor are connected with each other for the purposes of this paragraph if—

(a) they are connected with each other within the meaning of section 839 of the Taxes Act;

(b) one of them is a partnership and the other has the right to a share in that partnership;

(d) both of them are partnerships and some other person has the right to a share in both of them; or

(e) both of them are bodies corporate, or one of them is a partnership and the other is a body corporate, and (in either case) some other person has control over both of them. (4) All such assessments and adjustments of assessments shall be made as may be necessary to give effect to this paragraph.

(5) In this paragraph "control" shall be construed in accordance with section 840 of the Taxes Act; and any reference to the right to a share in a partnership is a reference to the right to a share of the assets or income of that partnership."

(2) This section shall have effect in relation to successions occurring after the passing of this Act.

Safety at sports grounds.

93.—(1) In the following enactments, namely—

1975 c. 45

1978 c. 42

for the words "sports stadium" and the word "stadium", in each place where they occur, there shall be substituted the words "sports ground".

(2) This section shall be deemed to have come into force on 1st January 1988.

Quarantine premises.

94.—(1) Section 71 of the [1980 c. 48.] Finance Act 1980 (expenditure in altering or replacing quarantine premises) shall cease to have effect.

(2) Nothing in subsection (1) above applies to expenditure which—

(a) is incurred after 15th March 1988 and before 1st April 1989; and

(b) consists of the payment of sums under a contract entered into on or before 15th March 1988 by the person incurring the expenditure. (3) Subsection (1) above shall be deemed to have come into force on 16th March 1988.

Dwelling-houses let on assured tenancies.

95.—(1) In relation to any capital expenditure which—

(a) is expenditure on the construction of a building which is or includes a dwelling-house; and

(b) is expenditure to which subsection (2) or (3) below applies,Schedule 12 to the [1982 c. 39.] Finance Act 1982 (capital allowances for dwelling-houses let on assured tenancies) shall have effect, after the coming into force of Part I of the Housing Act 1988, as if any qualifying tenancy of the dwelling-house were an assured tenancy within the meaning of section 56 of the [1980 c. 51.] Housing Act 1980.

(2) This subsection applies to any expenditure incurred—

(a) by an approved company; or

(b)  by a person who sells or sold the relevant interest in the building to an approved company before any of the dwelling-houses comprised in it are or were used,if it is incurred before 15th March 1988 or consists of the payment of sums under a contract entered into before that date.

    (3)  This subsection applies to any expenditure incurred before 1st April 1992 by an approved company which, before 15th March 1988, bought or contracted to buy the relevant interest in the building.

    (4)  For the purposes of this section, "qualifying tenancy" means a tenancy (whenever created) which for the purposes of the Housing Act 1988 is an assured tenancy other than an assured shorthold tenancy.

    (5)  In this section—

(a) "approved company" means a company which was on 15th March 1988 an approved body; and

(b) expressions which are also used in Schedule 12 to the Finance Act 1982 have the same meanings as in that Schedule;and paragraph 10 of that Schedule (expenditure on repair of buildings) shall apply for the purposes of this section as it applies for the purposes of that Schedule.

Prepared 20th September 2000