Finance Act 1993

117 Transactions between connected persons etc

(1) Section 158 of the [1990 c. 1.] Capital Allowances Act 1990 (election exercisable in the case of transactions between connected persons etc.) shall be amended as follows.

(2) In paragraph (a) of subsection (2) (sum at which industrial building or structure is treated as sold)—

(a) after the word “structure,”, in the first place where it occurs, there shall be inserted “a qualifying hotel or a commercial building or structure,”; and

(b) for the words “or structure”, in the second place where they occur, there shall be substituted “structure or hotel”.

(3) After paragraph (c) of that subsection there shall be inserted the following paragraph—

“(d) in the case of an asset representing allowable scientific research expenditure of a capital nature—

(i) if the expenditure is expenditure in respect of which an allowance is made under section 137, nil; and

(ii) in any other case, the amount of the expenditure.”

(4) In subsection (3) (cases where election may not be made), for paragraph (a) there shall be substituted the following paragraph—

“(a) if the circumstances of the sale (including those of the parties to it) are such that an allowance or charge under Part I, III, IV, VI or VII which (apart from those circumstances) would or might fall, in consequence of the sale, to be made to or on any of those parties will not be capable of so falling;”.

(5) This section shall have effect in relation to sales and other transfers on or after 16th March 1993 other than one which is in pursuance of—

(a) a contract entered into before that date; or

(b) a contract entered into for the purpose of securing that obligations under a contract entered into before that date are complied with.