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(1)No initial allowance shall be made under section 67 of the Capital Allowances Act 1968 (dredging) in respect of capital expenditure incurred on or after 1st April 1986 unless that expenditure—
(a)consists of the payment of sums under a contract entered into on or before 13th March 1984 by the person incurring the expenditure, and
(b)is incurred before 1st April 1987.
(2)Subsection (1) above shall be construed as if it were contained in Part I of the Capital Allowances Act 1968.
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