[F156B Fixtures on which a former owner had an allowance.U.K.
(1)Where—
(a)any machinery or plant falls to be treated for the purposes of this Part as a fixture belonging to any person (“the new claimant”) in consequence of his incurring capital expenditure on the provision of that machinery or plant, and
(b)the requirements of subsection (2) below are satisfied in the case of that machinery or plant,
so much (if any) of that expenditure as exceeds the maximum allowable amount shall be disregarded for the purposes of this Part or, as the case may be, shall be taken to be expenditure that should never have been taken into account for those purposes.
(2)The requirements of this subsection are satisfied in the case of any machinery or plant where—
(a)it falls or has fallen, otherwise than by virtue of section 154, to be treated as having belonged at a relevant earlier time to any person (“the prior claimant”) in consequence of his incurring expenditure (“the other expenditure”) which is not the expenditure mentioned in subsection (1)(a) above;
(b)the prior claimant, as a consequence of having made a claim for an allowance in respect of the other expenditure, is or has been required to bring a disposal value of the machinery or plant into account; and
(c)the event by reason of which that disposal value has been or is to be brought into account is an event occurring on or after 24th July 1996.
(3)For the purposes of this section the new claimant and the prior claimant may be the same person.
(4)Subject to subsection (5) below, the maximum allowable amount for the purposes of this section is the sum of—
(a)the disposal value of the machinery or plant which the prior claimant has been or is required to bring into account; and
(b)so much (if any) of the expenditure mentioned in subsection (1)(a) above as is deemed by virtue of section 66 (installation costs) to be expenditure on the provision of the machinery or plant.
(5)Subsection (4) above shall have effect where the requirements of subsection (2) above are satisfied by reference to more than one such event as is mentioned in subsection (2)(c) above as if they were satisfied by reference only to the most recent of those events.
(6)In this section “a relevant earlier time” means a time which—
(a)is before the time which is taken for the purposes of this Part to be the earliest time when the machinery or plant belonged to the new claimant in consequence of his incurring the expenditure mentioned in subsection (1)(a) above; and
(b)does not fall to be disregarded under subsection (7) below.
(7)For the purposes of subsection (6) above a time must be disregarded if—
(a)in consequence of any sale of the machinery or plant, it has ceased, at any time after that time and before the time mentioned in paragraph (a) of that subsection, to belong to any person;
(b)that person and the purchaser were not connected with each other, within the terms of section 839 of the principal Act, at the time of sale; and
(c)the sale was not a sale of the machinery or plant as a fixture.]
Textual Amendments
F1Ss. 56A-56D inserted (with effect in accordance with Sch. 16 para. 4(4) of the amending Act) by Finance Act 1997 (c. 16), Sch. 16 para. 4(1)