Deductions and other allowancesU.K.
25 Deductions from rent: general rules.U.K.
F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F1S. 25 ceased to have effect except for specified purposes (with effect in accordance with s. 39(4)(5) of the amending Act) by virtue of Finance Act 1995 (c. 4), s. 39(3), Sch. 6 para. 4(a); and s. 25 repealed (with effect as mentioned in s. 38(2)(3) of the repealing Act) by Finance Act 1998 (c. 36), ss. 38(1), 165, Sch. 5 para. 6, Sch. 27 Pt. 3(4), Note (with Sch. 5 paras. 65, 68, 73)
26 Deductions from rent: land managed as one estate.U.K.
F2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F2S. 26 repealed (with effect as mentioned in s. 39 of the repealing Act) by Finance Act 1998 (c. 36), s. 165, Sch. 27 Pt. 3(5), Note
27 Deductions from rent: maintenance funds for historic buildings.U.K.
F3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F3S. 27 repealed (with effect as mentioned in s. 39 of the repealing Act) by Finance Act 1998 (c. 36), s. 165, Sch. 27 Pt. 3(5), Note
28 Deductions from receipts other than rent.U.K.
F4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F4S. 28 ceased to have effect except for specified purposes (with effect in accordance with s. 39(4)(5) of the amending Act) by virtue of Finance Act 1995 (c. 4), s. 39(3), Sch. 6 para. 4(a); and s. 28 repealed (with effect as mentioned in s. 38(2)(3) of the repealing Act) by Finance Act 1998 (c. 36), ss. 38(1), 165, Sch. 5 para. 9, Sch. 27 Pt. 3(4), Note (with Sch. 5 paras. 65, 73)
29 Sporting rights.U.K.
F5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F5S. 29 ceased to have effect except for specified purposes (with effect in accordance with s. 39(4)(5) of the amending Act) by virtue of Finance Act 1995 (c. 4), s. 39(3), Sch. 6 para. 4(b); and s. 29 repealed (with effect as mentioned in s. 38(2)(3) of the repealing Act) by Finance Act 1998 (c. 36), ss. 38(1), 165, Sch. 5 para. 10, Sch. 27 Pt. 3(4), Note (with Sch. 5 paras. 65, 73)
30 Expenditure on making sea walls.U.K.
(1)M1Where in any year of assessment the owner or tenant of any premises incurs any expenditure in the making of any sea wall or other embankment necessary for the preservation or protection of the premises against the encroachment or overflowing of the sea or any tidal river, [F6that person shall be] treated [F7for the purpose of computing the profits of any Schedule A business carried on in relation to those premises] as making in that year of assessment and in each of the succeeding 20 years of assessment a payment in relation to the premises preserved or protected by the embankment of an amount equal to a twenty-first part of the expenditure and incurred in respect of dilapidation attributable to the year.
(2)Where the whole of that person’s interest in the premises or any part thereof is transferred (whether by operation of law or otherwise) to some other person—
(a)the amount of the payment which [F8that person would be] so treated as making for the year of assessment in which the transfer takes place shall be treated as being made partly by the transferor and partly by the transferee, as may be just; and
(b)the transferee shall, to the exclusion of the transferor, be treated in any subsequent year—
(i)where the interest transferred is in the whole of the premises, as having made the whole of the payment for that year, and
(ii)where the interest transferred is in part only of the premises, as having made so much of the payment as is properly referable to that part of the premises.
[F9(2A)If—
(a)the transferor is a company within the charge to corporation tax and the transferee is a person within the charge to income tax, or
(b)the transferor is a person within the charge to income tax and the transferee is a company within the charge to corporation tax,
subsection (2) above shall apply only for the purpose of determining the amount of the payment which the company is treated as making in any year of assessment.
For any entitlement of the person within the charge to income tax to a deduction for any of the expenditure, see sections 316 and 318 of ITTOIA 2005 (corresponding income tax provision).]
(3)For the purposes of subsection (2) above, where an interest in any premises is a lease and that lease comes to an end, that interest shall be deemed to have been transferred—
(a)if an incoming lessee makes any payment to the outgoing lessee in respect of the embankment in question, to the incoming lessee, and
(b)in any other case, to the owner of the interest in immediate reversion on the lease and, in relation to Scotland, the expression “the owner of the interest in immediate reversion on the lease” shall be construed as a reference to the landlord.
(4)In relation to a company, section 9(1) shall not have effect so as to require references in this section to a year of assessment to be read as references to an accounting period, but any deduction authorised by this section shall be apportioned between the accounting periods (if more than one) comprising the year of assessment, other than any such period ended before the expenditure is incurred, or transfer takes place, by virtue of which the company is entitled to the deduction.
(5)This section shall not apply in relation to any expenditure in respect of which a capital allowance has been made.
Textual Amendments
F6Words in s. 30(1) substituted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 15(2) (with Sch. 2)
F7Words in s. 30(1) substituted (with effect in accordance with s. 38(2)(3) of the amending Act) by Finance Act 1998 (c. 36), s. 38(1), Sch. 5 para. 11 (with Sch. 5 para. 73)
F8Words in s. 30(2)(a) substituted (with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 15(3) (with Sch. 2)
F9S. 30(2A) inserted (6.4.2005 with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 15(4) (with Sch. 2)
Modifications etc. (not altering text)
C1S. 30(1) modified (with effect in accordance with s. 39(4)(5) of the modifying Act) by Finance Act 1995 (c. 4), s. 39(3), Sch. 6 para. 7
C2 See 1979(C) s.34(4)(b)—restriction, by reference to capital allowances, of capital losses for purpose of capital gains.
Marginal Citations
M1SOURCE-1970 s. 76
31 Provisions supplementary to sections 25 to 30.U.K.
F10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F10S. 31 ceased to have effect except for specified purposes (with effect in accordance with s. 39(4)(5) of the amending Act) by virtue of Finance Act 1995 (c. 4), s. 39(3), Sch. 6 para. 4(c); and s. 31 repealed (with effect as mentioned in s. 38(2)(3) of the repealing Act) by Finance Act 1998 (c. 36), ss. 38(1), 165, Sch. 5 para. 12, Sch. 27 Pt. 3(4), Note (with Sch. 5 paras. 65, 68, 73)
Valid from 19/07/2007
[F1131ZADeduction for expenditure on energy-saving itemsU.K.
(1)This section applies if—
(a)a company carries on a Schedule A business in relation to land which consists of or includes a dwelling-house,
(b)the company incurs expenditure in acquiring and installing an energy-saving item in the dwelling-house or in a building containing the dwelling-house (see subsections (5) to (7)),
(c)the expenditure is incurred before 1st April 2015,
(d)a deduction for the expenditure is not prohibited by the wholly and exclusively rule but would otherwise be prohibited by the capital prohibition rule (see subsection (8)), and
(e)no allowance under the Capital Allowances Act may be claimed in respect of the expenditure.
(2)In calculating the profits of the Schedule A business, a deduction for the expenditure is allowed.
(3)But any deduction is subject to—
(a)section 31ZB (restrictions on the relief), and
(b)any provision made by regulations under section 31ZC.
(4)If, on a just and reasonable apportionment of any expenditure, part of the expenditure would qualify for the relief (but the remainder would not), a deduction is allowed for that part.
(5)“Energy-saving item” means an item of an energy-saving nature of such description as is for the time being specified in regulations made by the Treasury.
(6)The Treasury may by regulations provide for an item to be an energy-saving item only if it satisfies such conditions as may be—
(a)specified in, or
(b)determined in accordance with,
the regulations.
(7)The conditions may include conditions imposed by reference to information or documents issued by any body, person or organisation.
(8)In this section—
“the capital prohibition rule” means the rule in section 74(1)(f) or (g) (capital expenditure), as applied by section 21A, and
“the wholly and exclusively rule” means the rule in section 74(1)(a) or (e) (expenses not wholly and exclusively for trade and unconnected losses), as applied by section 21A.]
Textual Amendments
F11Ss. 31ZA-31ZC inserted (with effect in accordance with s. 17(2) of the amending Act) by Finance Act 2007 (c. 11), s. 17(1); S.I. 2008/1521, art. 2
Valid from 19/07/2007
[F1131ZBRestrictions on reliefU.K.
(1)This section restricts deductions that would otherwise be allowable under section 31ZA.
(2)No deduction is allowed if, when the energy-saving item is installed, the dwelling-house—
(a)is in the course of construction, or
(b)is comprised in land in which the company does not have an interest or is in the course of acquiring an interest or further interest.
(3)No deduction is allowed in respect of expenditure in an accounting period if—
(a)the Schedule A business consists of or includes the commercial letting of furnished holiday accommodation for the purposes of section 503, and
(b)the dwelling-house constitutes some or all of that accommodation for the accounting period.
(4)No deduction is allowed in respect of expenditure treated by section 401 (as applied by section 21B) as incurred on the date on which the company starts to carry on the Schedule A business unless the expenditure was incurred not more than 6 months before that date.
(5)No deduction is allowed in respect of expenditure incurred in acquiring and installing the energy-saving item in a building containing the dwelling-house in so far as the expenditure is not for the benefit of the dwelling-house.]
Textual Amendments
F11Ss. 31ZA-31ZC inserted (with effect in accordance with s. 17(2) of the amending Act) by Finance Act 2007 (c. 11), s. 17(1); S.I. 2008/1521, art. 2
Valid from 19/07/2007
[F1131ZCRegulationsU.K.
(1)In relation to any deduction under section 31ZA, the Treasury may make regulations for—
(a)restricting or reducing the amount of expenditure for which the deduction is allowable,
(b)excluding entitlement to the deduction in such cases as may be specified in, or determined in accordance with, the regulations,
(c)determining who is (and is not) entitled to the deduction if different persons have different interests in land that consists of or includes the whole or part of a building containing one or more dwelling-houses,
(d)making apportionments if the Schedule A business is carried on by persons in partnership or an interest in land is beneficially owned by persons jointly or in common.
(2)The apportionments that may be made include apportionments to persons within the charge to income tax.
(3)Regulations under this section may—
(a)make different provision for different cases, and
(b)contain incidental, supplemental, consequential and transitional provision and savings (including provision as to appeals in relation to apportionments mentioned in subsection (1)(d)).]
Textual Amendments
F11Ss. 31ZA-31ZC inserted (with effect in accordance with s. 17(2) of the amending Act) by Finance Act 2007 (c. 11), s. 17(1); S.I. 2008/1521, art. 2
[F1231ADeductions for expenditure by landlords on energy-saving itemsU.K.
F13. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F12Ss. 31A, 31B inserted (with effect in accordance with s. 143(2) of the amending Act) by Finance Act 2004 (c. 12), s. 143(1)
F13S. 31A repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 16, Sch. 3 (with Sch. 2)
31BProvisions supplementary to section 31AU.K.
F14. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .]
Textual Amendments
F12Ss. 31A, 31B inserted (with effect in accordance with s. 143(2) of the amending Act) by Finance Act 2004 (c. 12), s. 143(1)
F14S. 31B repealed (6.4.2005 with effect in accordance with s. 883(1) of the repealing Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), Sch. 1 para. 16, Sch. 3 (with Sch. 2)
32 Capital allowances for machinery and plant used in estate management.U.K.
F15. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F15S. 32 repealed (with effect as mentioned in Sch. 15 para. 9(1) of the repealing Act) by Finance Act 1997 (c. 16), ss. 85, 113, Sch. 15 para. 1, Sch. 18 Pt. 06(11), Note
33 Agricultural land: allowance for excess expenditure on maintenance.U.K.
F16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Textual Amendments
F16S. 33 ceased to have effect except for specified purposes (with effect in accordance with s. 39(4)(5) of the amending Act) by virtue of Finance Act 1995 (c. 4), s. 39(3), Sch. 6 para. 4(d); and s. 33 repealed (with effect as mentioned in s. 38(2)(3) of the repealing Act) by Finance Act 1998 (c. 36), ss. 38(1), 165, Sch. 5 para. 13, Sch. 27 Pt. 3(4), Note (with Sch. 5 paras. 65, 73)