Modifications etc. (not altering text)
C1Pt. 5 modified by 1988 c. 1, s. 434E (3) (as inserted (with effect in accordance with Sch. 8 paras. 55(2), 57(1) of the amending Act) by Finance Act 1995 (c. 4), Sch. 8 para. 23(1))
(1)This section applies where expenditure falling within section 123 is expenditure on the construction of a building, fence or other works and, before the building, fence or works comes to be used, the relevant interest is sold.
(2)Where this section applies—
(a)the expenditure shall be left out of account for the purposes of this Part and, accordingly, any writing-down allowance made in respect of the expenditure shall be withdrawn and all such assessments and adjustments of assessments shall be made as may be necessary to give effect to that withdrawal;
(b)section 126 shall not apply; and
(c)the person who buys the relevant interest shall be treated for the purposes of this Part as having incurred, on the date when the purchase price becomes payable, expenditure falling within section 123 on the construction of the building, fence or other works.
(3)The expenditure referred to in subsection (2)(c) above is whichever is the lesser of—
(a)the net price paid by the person concerned for the purchase of the relevant interest; and
(b)the expenditure referred to in subsection (1) above.
F1[(3A)The expenditure referred to in subsection (1) above includes neither—
(a)expenditure which falls to be disregarded for the purposes of writing-down allowances by virtue of section 124(1); nor
(b)expenditure some or all of which is expenditure to which section 124A applies.
(3B)Accordingly, any expenditure which is treated as incurred under subsection (2)(c) above shall be treated (without prejudice to section 124(2)) as incurred for the purposes mentioned in section 124(1).]
(4)Where the relevant interest is sold more than once in circumstances falling within subsection (1) above, subsection (2)(c) [F2(3) and (3B)] above shall have effect only in relation to the last of those sales.
Textual Amendments
F1S. 127(3A)(3B) inserted (27.7.1993 with effect as mentioned in s. 114(2) of the amending Act) by 1993 c. 34, s. 114, Sch. 12 para. 5(1)
F2Words in s. 127(4) substituted (27.7.1993 with effect as mentioned in s. 114(2) of the amending Act) by 1993 c. 34, 114, Sch. 12 para. 5(2)