Part 3Capital allowances
Plant and machinery: qualifying expenditure
71Thermal insulation of buildings
1
Section 28 of CAA 2001 (thermal insulation of industrial buildings) is amended as follows.
2
In subsection (1)—
a
for “consisting of a trade” substitute “
other than an ordinary property business or an overseas property business
”
,
b
for “an industrial” substitute “
a
”
, and
c
for “the trade” substitute “
the qualifying activity
”
.
3
In subsection (2), for “an industrial” substitute “
a
”
.
4
After that subsection insert—
2A
Subsection (2) is subject to section 35 (expenditure on plant or machinery for use in dwelling-house not qualifying expenditure).
2B
This section does not apply to expenditure within subsection (2) if a deduction for that expenditure is allowable—
a
under section 31ZA of ICTA, or
b
under section 312 of ITTOIA 2005,
(deductions for expenditure on energy-saving items).
2C
For the purposes of subsection (2B), whether such a deduction is allowable is to be determined without regard to subsection (1)(e) of the section in question.
5
Omit subsection (3).
6
In the heading, omit “industrial”.
7
In section 23(2) of CAA 2001 (expenditure unaffected by sections 21 and 22), in the entry for section 28, omit “industrial”.
8
The amendments made by this section have effect—
a
for corporation tax purposes, in relation to expenditure incurred on or after 1 April 2008, and
b
for income tax purposes, in relation to expenditure incurred on or after 6 April 2008.