Finance Act 1984

58 Withdrawal of initial and first year allowances

(1) Each of the following allowances in respect of capital expenditure, namely,—

(a) initial allowances under section 1 of the [1968 c. 3.] Capital Allowances Act 1968 (industrial buildings and structures),

(b) first-year allowances under section 41 of the [1971 c. 68.] Finance Act 1971 (machinery and plant), and

(c) initial allowances under Schedule 12 to the [1982 c. 39.] Finance Act 1982 (dwelling-houses let on assured tenancies),

shall be progressively withdrawn in accordance with Part I of Schedule 12 to this Act.

(2) Part II of Schedule 12 to this Act shall have effect—

(a) to provide transitional relief in respect of certain capital expenditure incurred in connection with projects in development areas and Northern Ireland; and

(b) with respect to the treatment of certain capital expenditure incurred in the financial years 1984 and 1985 under contracts entered into after 13th March 1984 and on or before 31st March 1986.

(3) In paragraph 8 of Schedule 8 to the [1971 c. 68.] Finance Act 1971 (special rules for new ships) in sub-paragraph (2)(b) for the words " the expenditure to which the allowance relates " there shall be substituted the words " so much of the expenditure as is equal to the whole allowance. "

(4) Nothing in subsection (1)(a) above or in paragraph 1 of Schedule 12 to this Act affects the continuing operation of—

(a) paragraph 1 of Schedule 6 to the [1978 c. 42.] Finance Act 1978 (20 per cent. initial allowance for capital expenditure in respect of hotels); or

(b) paragraph 1 of Schedule 13 to the [1980 c. 48.] Finance Act 1980 (100 per cent, initial allowance for capital expenditure in respect of industrial buildings etc. in enterprise zones and for capital expenditure incurred before 27th March 1985 in respect of small workshops);

and paragraph 5 of Schedule 12 to this Act does not apply to expenditure in respect of which the rate of initial allowance is determined by the provision referred to in paragraph (b) above.