Finance Act 1981

77 Carry forward of unused allowances

(1) Section 70 of the [1968 c. 3.] Capital Allowances Act 1968 (income tax allowances in taxing a trade etc.) shall be amended as follows.

(2) In subsection (4) for the words following " as the case may be " there shall be substituted the words " shall be carried forward and, so far as may be, made as a deduction in charging the profits or gains of the trade in subsequent years of assessment. "

(3) After that subsection there shall be inserted—

“(4A) Where the allowances in respect of which deductions can be made under this section for any year include allowances carried forward under subsection (4) above from a previous year the allowances shall, subject to paragraph 5 of Schedule 9 to the Finance Act 1981, be deducted in the following order—

(a) allowances other than those carried forward under subsection (4) above from an earlier year ;

(b) allowances carried forward as aforesaid from years of assessment not earlier than the year for which the basis period ended on or included 14th November 1980;

(c) allowances carried forward as aforesaid from years of assessment earlier than those referred to in paragraph (b) above.”

(4) This section has effect for the year of assessment for which the basis period ended on or included 14th November 1980 and for subsequent years of assessment.