Finance Act 1984

1 (1) In section 1(2) of the [1968 c. 3.] Capital Allowances Act 1968 (rate of initial allowances for capital expenditure on the construction of industrial buildings or structures) for the words " three-quarters" there shall be substituted,—

(a) with respect to capital expenditure incurred after 13th March 1984 and before 1st April 1985, the words " one half" ; and

(b) with respect to capital expenditure incurred on or after 1st April 1985 and before 1st April 1986, the words "one quarter " ;

and no initial allowance shall be made in respect of expenditure incurred on or after 1st April 1986.

(2) Nothing in sub-paragraph (1) above applies to capital expenditure which—

(a) is incurred after 13th March 1984 and before 1st April 1987 ; and

(b) consists of the payment of sums under a contract entered into on or before 13th March 1984 by the person incurring the expenditure.

(3) Sub-paragraphs (1) and (2) above shall be construed as if they were contained in Part I of the [1968 c. 3.] Capital Allowances Act 1968 except that—

(a) expenditure shall not be treated for the purposes of those sub-paragraphs as having been incurred after the date on which it was in fact incurred by reason only of section 1(6) of that Act (expenditure incurred before a trade begins); and

(b) expenditure falling within subsection (1)(b) of section 5 of that Act (purchase price of building or structure bought unused) shall be treated for the purposes of those sub-paragraphs as having been incurred at the latest time when any expenditure falling within subsection (1)(a) of that section (expenditure on the construction of the building or structure) was incurred.