Finance Act 1989

1 (1) In the [1968 c. 3.] Capital Allowances Act 1968 (“the 1968 Act”) after section 5 (buildings and structures bought unused) there shall be inserted—

“5A Buildings and structures bought after use

(1) This section applies where—

(a) expenditure is incurred on the construction of a building or structure by a person carrying on a trade which consists, in whole or part, in the construction of buildings or structures with a view to their sale, and

(b) after the building or structure has been used, he sells the relevant interest in it in the course of that trade or, as the case may be, of that part of that trade.

(2) Where this section applies, this Chapter shall have effect in relation to the person who buys the interest as if—

(a) the original expenditure had been capital expenditure,

(b) all appropriate writing-down allowances had been made to the person incurring it, and

(c) all appropriate balancing allowances or charges had been made on the occasion of the sale.”

(2) This paragraph shall have effect in any case where the purchase price payable on any sale becomes payable on or after the day on which this Act is passed.