Finance Act 1986

PART I Amendments of [1980 c. 48.] Finance Act 1980, Sections 64 to 68

1 (1) In section 64, subsection (1) (exclusion of first-year allowances etc.) shall be omitted.

(2) In subsection (2)(a) of that section—

(a) the words "a first-year allowance could have been made to the lessee" shall be omitted; and

(b) after the words "in doing so" there shall be inserted "that expenditure would have fallen to be included, in whole or in part, in his qualifying expenditure for any chargeable period for the purposes of subsections (2), (2A) and (3) of section 44 of the [1971 c. 68.] Finance Act 1971 (writing-down allowances)".

(3) In subsection (6A) of that section for the words "first-year allowance" there shall be substituted "writing-down allowance of an amount determined without regard to section 70(2) of the [1982 c. 39.] Finance Act 1982".

(4) In subsection (8) of that section (the requisite period) at the beginning there shall be inserted "subject to subsection (8A) below" and for the word "four", in each place where it occurs, there shall be substituted "ten".

(5) After subsection (8) of that section there shall be inserted the following subsection—

“(8A) If the circumstances are such that machinery or plant is used for a qualifying purpose, subsection (8) above shall have effect as if each reference therein to ten years were a reference to four years”.

(6) Subsection (10) of that section shall be omitted.

(7) In subsection (11) of that section—

(a) for the words from the beginning to "expenditure", in the first place where it occurs, there shall be substituted "Where expenditure is incurred";

(b) for the words "if it" there shall be substituted "which"; and

(c) for the words "plant; and so" there shall be substituted "plant, so".

2 (1) In section 65 (writing-down allowances etc. in case of leased assets) in subsection (1) for the words from the beginning to "leasing" there shall be substituted "Where section 70 of the Finance Act 1982 applies to expenditure on the provision of machinery or plant for leasing".

(2) In subsection (6) of that section the words from the beginning to "1971; but" shall be omitted and for the words "that Schedule" there shall be substituted "Schedule 8 to the [1971 c. 68.] Finance Act 1971".

3 Sections 66 and 67 shall be omitted.

4 (1) In section 68 (joint lessees), at the end of subsection (1) there shall be added "and—

(a) at least one of the joint lessees is a person falling within paragraphs (a) and (b) of subsection (1) of section 70 of the Finance Act 1982; and

(b) the leasing is not permitted leasing as denned in paragraph 7 of Schedule 16 to the Finance Act 1986".

(2) In subsection (2) of that section—

(a) for the words from the beginning to "shall not apply" there shall be substituted "If;

(b) the words "but if shall be omitted; and

(c) for the words "it shall be regarded as used for a qualifying purpose" there shall be substituted "the expenditure on the provision of the machinery or plant shall be treated as not falling within subsection (1) of the said section 70".

(3) In subsection (3) of that section—

(a) the words from "a first-year" to "in respect of shall be omitted;

(b) after the words "machinery or plant", where they first occur, there shall be inserted "is treated as not falling within subsection (1) of section 70 of the [1982 c. 39.] Finance Act 1982";

(c) for the words "and sections 65 and 66" there shall be substituted "the said section 70 and section 65 above"; and

(d) in paragraph (b) after the word "expenditure" there shall be inserted "(falling within subsection (1) of the said section 70)" and after the word "plant" there shall be inserted "used otherwise than for a qualifying purpose".

(4) Subsections (4) to (8) of that section shall be omitted.