Capital Allowances Act 1990 (repealed)

1. Introductory Text

2. Part I Industrial Buildings and Structures

   1. Chapter I Initial Allowances

      1. 1. Buildings and structures in enterprise zones.

      2. 2. Transitional relief for regional projects.

      3. 2A. Initial allowances: contracts entered into between October 1992 and November 1993.

   2. Chapter II Writing-down Allowances, Balancing Allowances and Balancing Charges

      1. 3. Writing-down allowances.

      2. 4. Balancing allowances and balancing charges.

      3. 4A. Realisation of capital value.

      4. 5. Restriction of balancing allowances on sale of industrial buildings or structures.

      5. 6. Buildings and structures (including hotels) in enterprise zones.

      6. 7. Other hotels.

   3. Chapter III Provisions Supplementary to Chapters I and II

      1. 8. Writing off of expenditure and meaning of “residue of expenditure".

      2. 9. Manner of making allowances and charges.

      3. 10. Purchases of buildings and structures.

      4. 10A. Purchases of buildings and structures: special provision for enterprise zones.

      5. 10B. Purchases of buildings and structures in enterprise zones within two years of use.

      6. 10C. Purchases of buildings and structures: allowances under section 2A.

      7. 10D. Arrangements affecting the value of the purchased interest.

      8. 11. Long leases.

      9. 12. Expenditure on repair of buildings.

      10. 13. Expenditure on sites for machinery and plant.

      11. 14. Sports pavilions.

      12. 15. Temporary disuse of industrial buildings or structures.

      13. 15ZA. Temporary disuse: manner of making allowances and charges in certain cases.

      14. 15A. Balancing charge after cessation of trade.

      15. 16. Requisitioned land, holding over of leased land and other special cases.

      16. 17. Mining structures etc: balancing allowances carried back to earlier chargeable periods.

      17. 17A. Enterprise zones: exclusion of expenditure.

      18. 18. Definition of “industrial building or structure".

      19. 19. Meaning of “qualifying hotel".

      20. 20. Meaning of “the relevant interest".

      21. 21. Other interpretation of Part I.

3. Part II Machinery and Plant

   1. Chapter I Allowances and Charges: General Provisions

      1. 22. First-year allowances: transitional relief for regional projects.

      2. 22A. Expenditure of a small or medium-sized enterprise.

      3. 22AA. Expenditure of a small enterprise.

      4. 22B. Withdrawal of first-year allowance on change of use.

      5. 22C. Disclosure of information in connection with first-year allowances.

      6. 23. Information relating to first-year allowances.

      7. 24. Writing-down allowances and balancing adjustments.

      8. 25. Qualifying expenditure.

      9. 26. The disposal value.

      10. 27. Professions, employments, vocations etc.

      11. 28. Investment companies.

      12. 28A. Schedule A cases.

      13. 29. Furnished holiday lettings.

   2. Chapter II Ships

      1. 30. First-year allowances.

      2. 31. Writing-down allowances.

      3. 32. Ships not used in the actual trade.

      4. 33. Exclusion of section 31.

      5. Balancing charges in respect of ship disposals etc.

         1. 33A. Deferment of balancing charge.

         2. 33B. Amount brought into account in respect of the old ship.

         3. 33C. Reimposition of deferred charge.

         4. 33D. Expenditure to which deferments attributed.

         5. 33E. Qualifying ships.

         6. 33F. Procedural provisions relating to deferred charges.

   3. Chapter III Expensive Motor Cars

      1. 34. Writing-down allowances etc.

      2. 35. Contributions to expenditure, and hiring of cars.

      3. 36. Definition of “motor car", etc.

   4. Chapter IV Short-Life Assets

      1. 37. Election for certain machinery or plant to be treated as short-life assets.

      2. 38. Assets which cannot be treated as short-life assets.

   5. Chapter IVA Long-life assets

      1. Expenditure to which Chapter applies

         1. 38A. Application of Chapter.

         2. 38B. Expenditure excluded from the application of the Chapter.

         3. 38C. Exclusion of Chapter where limit for individuals and partnerships not exceeded.

         4. 38D. Exclusion of Chapter where company’s limit not exceeded.

      2. Rules applying to expenditure on long-life assets

         1. 38E. Separate pools for expenditure on long-life assets.

         2. 38F. Modifications applying to pools for long-life assets.

         3. 38G. Disposal value of long-life assets.

      3. Transitional provisions

         1. 38H. Transitional provisions.

   6. Chapter V Leased Assets and Inexpensive Cars

      1. 39. Meaning of “qualifying purpose".

      2. 40. Meaning of “short-term leasing" and “the requisite period".

      3. 41. Writing-down allowances etc. for leased assets and inexpensive cars.

      4. 42. Assets leased outside the United Kingdom.

      5. 43. Joint lessees: new expenditure.

      6. 44. Further provisions relating to joint lessees in cases involving new expenditure.

      7. 45. Joint lessees: old expenditure.

      8. 46. Recovery of excess relief: new expenditure.

      9. 47. Recovery of excess relief: old expenditure.

      10. 48. Information relating to allowances made in respect of new expenditure.

      11. 49. Information relating to allowances made in respect of old expenditure.

      12. 50. Interpretation of Chapter V.

   7. Chapter VI Fixtures

      1. 51. Application and interpretation of Chapter VI.

      2. 52. Expenditure incurred by holder of interest in land.

      3. 53. Expenditure incurred by equipment lessor.

      4. 54. Expenditure included in consideration for acquisition of existing interest in land.

      5. 55. Expenditure incurred by incoming lessee: transfer of allowances.

      6. 56. Expenditure incurred by incoming lessee: lessor not entitled to allowances.

      7. 56A. Restriction on duplicate allowances under sections 54 and 56.

      8. 56B. Fixtures on which a former owner had an allowance.

      9. 56C. Fixtures on which an allowance has been given under Part I.

      10. 56D. Fixtures on which an allowance has been given under Part VII.

      11. 57. Fixtures treated as ceasing to belong to particular persons.

      12. 58. Equipment lessors: special provisions.

      13. 59. Disposal value of fixtures in certain cases.

      14. 59A. Disposal values in avoidance cases.

      15. 59B. Election to use alternative apportionment.

      16. 59C. Elections under section 59B: supplemental.

   8. Chapter VII Miscellaneous Expenditure

      1. 60. Machinery and plant on hire-purchase etc.

      2. 60A. Machinery and plant on hire-purchase etc.: fixtures.

      3. 61. Machinery and plant on lease.

      4. 62. Treatment of demolition costs.

      5. 62A. Special allowance for demolition costs related to offshore machinery or plant.

      6. 62B. Treatment of post-cessation abandonment expenditure related to offshore machinery or plant.

      7. 63. Mineral extraction.

      8. 64. Transfers of interests in oil fields.

      9. 64A. Production sharing contracts.

      10. 65. Partnership using property of a partner.

      11. 66. Building alterations connected with installation of machinery or plant.

      12. 67. Expenditure on thermal insulation.

      13. 67A. Computer software.

      14. 68. Exclusion of certain expenditure relating to films, tapes and discs.

      15. 69. Expenditure on fire safety.

      16. 70. Expenditure on safety at sports grounds.

      17. 71. Security.

      18. 72. Security: supplementary.

   9. Chapter VIII Supplementary Provisions

      1. 73. Manner of making allowances and charges.

      2. 74. Allowances not available: expenses of MPs and others.

      3. 75. Further restrictions on allowances.

      4. 76. Extension of section 75.

      5. 76A. Special provision for finance lease cases.

      6. 76B. Special provision for sale and leaseback cases.

      7. 77. Successions to trades: connected persons.

      8. 78. Succession to trades where no election made under section 77.

      9. 79. Effect of use partly for trade etc. and partly for other purposes.

      10. 79A. Reduction in qualifying use.

      11. 80. Effect of subsidies towards wear and tear.

      12. 81. Effect of use after user not attracting capital allowances, or after receipt by way of gift.

      13. 82. Capital expenditure to which this Part does not apply.

      14. 82A. Meaning of “finance lease”.

      15. 83. Other interpretative provisions.

4. Part III Dwelling-houses Let on Assured Tenancies

   1. 84. Application of Part III.

   2. 85. Writing-down allowances.

   3. 86. Qualifying dwelling-houses.

   4. 87. Balancing allowances and charges and withdrawal of initial allowances in certain cases.

   5. 88. Dwelling-houses not continuously qualifying dwelling-houses.

   6. 89. Supplementary provisions where dwelling-house ceases to be a qualifying dwelling-house.

   7. 90. Writing off of expenditure and meaning of “residue of expenditure".

   8. 91. Buildings bought unused.

   9. 92. Manner of making allowances and charges.

   10. 93. Repairs, and double allowances.

   11. 94. Holding over by lessees, etc.

   12. 95. The relevant interest.

   13. 96. The appropriate capital expenditure.

   14. 97. Interpretation.

5. Part IV Mineral Extraction

   1. Chapter I Allowances and Charges

      1. 98. Writing-down and balancing allowances.

      2. 99. Disposal receipts.

      3. 100. Balancing charges: excess of allowances etc. over expenditure.

      4. 101. Occasions of balancing allowances.

      5. 102. Treatment of qualifying expenditure on mineral exploration and access.

      6. 103. Demolition costs.

      7. 104. Manner of making allowances and charges.

   2. Chapter II Qualifying Expenditure

      1. 105. General provisions.

      2. 106. Pre-trading expenditure on machinery or plant which is sold etc.

      3. 107. Pre-trading exploration expenditure.

      4. 108. Contributions by mining concerns to public services etc. outside the United Kingdom.

      5. 109. Restoration expenditure.

   3. Chapter III Limitations on Qualifying Expenditure etc.

      1. 110. Expenditure on the acquisition of land.

      2. 111. Reduction of qualifying expenditure for premium relief.

      3. 112. Restriction of disposal receipts.

      4. 113. Assets formerly owned by traders.

      5. 114. Assets previously acquired.

      6. 115. Expenditure partly attributable to mineral exploration and access.

      7. 116. Oil licences etc.

      8. 117. Transfer of mineral assets within a group.

      9. 118. Assets formerly owned by non-traders.

      10. 118A. Disposals of oil licences relating to undeveloped areas.

   4. Chapter IV Supplementary Provisions

      1. 119. Transitional provisions relating to old expenditure.

      2. 120. Time when expenditure is incurred.

      3. 121. Interpretation of Part IV.

6. Part V Agricultural Buildings etc.

   1. Chapter I Agriculture

      1. 122. Allowances for expenditure incurred before 1st April 1986.

      2. 123. Allowances for expenditure incurred after 31st March 1986.

      3. 124. Expenditure qualifying for allowances.

      4. 124A. Initial allowances: contracts entered into between October 1992 and November 1993.

      5. 124B. Restriction on writing-down allowance where initial allowance made.

      6. 125. Meaning of “major interest" and “the relevant interest".

      7. 126. Transfers of relevant interest.

      8. 127. Buildings etc. bought unused.

      9. 127A. Purchases of buildings and structures: cases involving initial allowances.

      10. 128. Balancing allowances and charges.

      11. 129. Balancing events.

      12. 130. Restriction of balancing allowances on sale of buildings.

   2. Chapter II Forestry

      1. 131. Forestry: transitional provisions.

   3. Chapter III Supplemental

      1. 132. Manner of making allowances and charges.

      2. 133. Interpretation of Part V.

7. Part VI Dredging

   1. 134. Allowances for expenditure on dredging.

   2. 135. Interpretation of Part VI.

8. Part VII Scientific Research

   1. 136. Allowances for expenditure on scientific research not of a capital nature, and on payments to research associations, universities etc.

   2. 137. Allowances for capital expenditure on scientific research.

   3. 138. Assets ceasing to belong to traders.

   4. 138A. Disposal of oil licences etc.

   5. 138B. Disposal of oil licences: election for alternative tax treatment.

   6. 139. Supplemental.

9. Part VIII Supplementary Provisions

   1. 140. Income tax allowances and charges in taxing a trade etc.

   2. 141. Other income tax allowances.

   3. 142. Restriction of set-off of allowances against general income.

   4. 143. Tax agreements.

   5. 144. Corporation tax allowances and charges in taxing a trade.

   6. 145. Other corporation tax allowances.

   7. 145A. Corporation tax allowances: claims.

   8. 146. Writing-down allowances under Parts V and VI.

   9. 147. Exclusion of double allowances.

   10. 148. Double allowances: transitional provisions.

   11. 149. Companies not resident in the United Kingdom.

   12. 150. Apportionment of consideration, and exchanges and surrenders of leasehold interests.

   13. 151. Procedure on apportionments.

   14. 152. Succession to trades etc.

   15. 152A. Insurance companies: transfers of business.

   16. 152B. Transfer of a UK trade.

   17. 153. Subsidies, contributions etc.

   18. 154. Allowances in respect of contributions to capital expenditure.

   19. 155. Further provisions relating to capital contributions.

   20. 156. Meaning of “sale, insurance, salvage or compensation moneys".

   21. 157. Sales between connected persons etc.

   22. 158. Further provisions relating to sales without change of control or between connected persons.

   23. 159. Capital expenditure, capital sums and time when capital expenditure is incurred.

   24. 159A. Additional VAT liabilities and rebates.

   25. 160. Meaning of “period of account”.

   26. 161. Other interpretative provisions.

   27. 162. Application to Scotland.

   28. 163. Continuity and construction of enactments etc.

   29. 164. Commencement, amendments and repeals.

   30. 165. Short title.

10. SCHEDULES

    1. SCHEDULE AA1

       Exclusions from expenditure on machinery or plant

       1. Buildings

          1. 1. (1) For the purposes of this Act expenditure on the...

       2. Structures, assets and works

          1. 2. (1) For the purposes of this Act expenditure on the...

          2. 1. “ Dock ” includes— (a) any harbour, wharf, pier, marina...

          3. 2. An industrial structure, that is, anything (other than a building)...

       3. Land

          1. 3. (1) For the purposes of this Act expenditure on the...

       4. General exemptions

          1. 4. Paragraphs 1(1) and 2(1) above do not apply to any...

       5. Interpretation

          1. 5. (1) In this Schedule— (a) “ structure ” means a...

    2. SCHEDULE A1

       Corporation Tax Allowances: Claims

       1. Introductory

          1. 1. (1) This Schedule has effect as respects claims for allowances...

       2. Time limits

          1. 2. (1) No claim for an accounting period of a company...

          2. 3. (1) No claim for an accounting period of a company...

          3. 4. (1) No claim for an accounting period of a company...

          4. 5. Where under paragraph 2, 3 or 4 above a claim...

          5. 6. (1) A claim for an accounting period of a company...

       3. Method of making claim

          1. 7. (1) A claim shall be made by being included in...

       4. Nature of claim

          1. 8. A claim, other than one under paragraph 6 above, shall...

          2. 9. (1) A claim under paragraph 6 above shall be expressed...

       5. Adjustments

          1. 10. (1) All such assessments or adjustments of assessments shall be...

          2. 11. Where a claim affecting an amount determinable under section 41A...

    3. SCHEDULE 1

       Consequential amendments

       1. Taxes Management Act 1970 c. 10

          1. 1. (1) In sections 57(3)(b) and 58(3)(b) of the Taxes Management...

       2. Social Security Act 1975 c. 14

       3. Social Security (Northern Ireland) Act 1975 c. 15

          1. 2. . . . . . . . . . ....

       4. Capital Gains Tax Act 1979 c. 14

          1. 3. . . . . . . . . . ....

       5. Finance Act 1982 c. 39

          1. 4. In section 137 of the Finance Act 1982—

       6. London Regional Transport Act 1984 c. 32

          1. 5. In paragraph 5 of Schedule 5 to the London Regional...

       7. Films Act 1985 c. 21

          1. 6. In section 6(1) and in paragraphs 2 and 3 of...

       8. Trustee Savings Bank Act 1985 c. 58

          1. 7. In paragraph 1 of Schedule 2 to the Trustee Savings...

       9. Income and Corporation Taxes Act 1988 c. 1

          1. 8. (1) The Income and Corporation Taxes Act 1988 shall be...

       10. Finance Act 1988 c. 39

           1. 9. (1) . . . . . . . . ....

       11. Finance Act 1989 c. 26

           1. 10. In section 121(2) of the Finance Act 1989 for the...

       12. Electricity Act 1989 c. 29

           1. 11. In paragraph 5 of Schedule 11 to the Electricity Act...

    4. SCHEDULE 2

       Repeals

    5. CAPITAL ALLOWANCES ACT 1990 TABLE OF DERIVATIONS

       Note:The following abbreviations are used in this Table:—