Capital Allowances Act 1990 (repealed)

132 Manner of making allowances and charges. U.K.

(1) An allowance under section 122(1) shall be made by way of discharge or repayment of tax and shall be available primarily against agricultural income and forestry income.

(2) Any other allowance and any charge made to or on any person under this Part shall, except as provided by subsections (3) and (4) below, be made to or on him in taxing his trade; and subsection (3) does not apply to an allowance to which subsection (1) above applies.

[F1 (2A) In the case of an allowance or charge which falls to be made to a person for a chargeable period in which he is not carrying on a trade, subsection (2) above shall have effect for the purposes of income tax—

(a) as if any Schedule A business carried on by that person at that time were the trade in the taxing of which the allowance or charge were to be made; or

(b) where that person is not carrying on such a business at that time, as if he were carrying on such a business and the business were the trade in the taxing of which the allowance or charge is to be made;

and this Act shall have effect in each case as if the Schedule A business which is deemed to be a trade for the purposes of this subsection were a trade set up and commenced on or after 6th April 1995.]

(3) [F2 For the purposes of corporation tax] any allowance which falls to be made to a person for a chargeable period in which he is not carrying on a trade shall be made by way of discharge or repayment of tax and shall be available primarily against agricultural income and forestry income and income which is the subject of a balancing charge.

(4) [F3 For the purposes of corporation tax] effect shall be given to a balancing charge to be made on a person for a chargeable period in which he is not carrying on a trade—

F4 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) F5 ..., by treating the amount on which the charge is to be made as agricultural income or forestry income.

(5) In relation to chargeable periods beginning on or after 6th April 1993 subsections (1) and (3) above shall have effect with the omission of the words “and forestry income" and subsection (4) above shall have effect with the omission of the words “or forestry income".

Textual Amendments

F1 S. 132(2A) inserted (with effect in accordance with s. 39(4)(5) of the amending Act) by Finance Act 1995 (c. 4), Sch. 6 para. 35(1)

F2 Words in s. 132(3) inserted (with effect in accordance with s. 39(4)(5) of the amending Act) by Finance Act 1995 (c. 4), Sch. 6 para. 35(2)

F3 Words in s. 132(4) inserted (with effect in accordance with s. 39(4)(5) of the amending Act) by Finance Act 1995 (c. 4), Sch. 6 para. 35(2)

F4 S. 132(4)(a) repealed (with effect in accordance with s. 39(4)(5) of the amending Act) by Finance Act 1995 (c. 4), Sch. 6 para. 35(2), Sch. 29 Pt. 8(1)

F5 Words in s. 132(4)(b) repealed (with effect in accordance with s. 39(4)(5) of the amending Act) by Finance Act 1995 (c. 4), Sch. 6 para. 35(2), Sch. 29 Pt. 8(1)