Capital Allowances Act 1990 (repealed)

21 Other interpretation of Part I. U.K.

(1) References in this Part to expenditure incurred on the construction of a building or structure do not include any expenditure incurred on the acquisition of, or of rights in or over, any land.

(2) A person who has incurred expenditure on the construction of a building or structure shall be deemed, for the purposes of any provision of this Part referring to his interest therein at the time when the expenditure was incurred, to have had the same interest therein as he would have had if the construction thereof had been completed at that time.

(3) Without prejudice to any of the other provisions of this Part or Part VIII relating to the apportionment of sale, insurance, salvage or compensation moneys, the sum paid on the sale of the relevant interest in a building or structure, or any other sale, insurance, salvage or compensation moneys payable in respect of any building or structure, shall, for the purposes of this Part, be deemed to be reduced by an amount equal to so much thereof as, on a just apportionment, is attributable to assets representing expenditure other than expenditure in respect of which an allowance can be made under this Part.

(4) In this Part “enterprise zone” means an area designated as such by an order made by the Secretary of State under powers in that behalf conferred by Schedule 32 to the M1 Local Government, Planning and Land Act 1980 or, in Northern Ireland, by an order made by the Department of the Environment for Northern Ireland under Article 7 of the M2 Enterprise Zones (Northern Ireland) Order 1981.

(5) In this Part “commercial building or structure” means a building or structure, other than an industrial building or structure or a qualifying hotel, which is used for the purposes of a trade, profession or vocation or, whether or not for such a purpose, as an office or offices but does not include any building or structure in use as, or as part of, a dwelling-house.

[F1 (5AA) In this Part—

• “highway concession”, in relation to any road, means—

  (a)

  any right, in respect of the fact that the road is or will be used by the general public, to receive sums from the Secretary of State or from the Department of the Environment for Northern Ireland, or

  (b)

  where that road is a toll road, the right to charge tolls in respect of the road,

  and

• “highway undertaking” means so much of any undertaking relating to the design, building, financing and operation of any roads as is carried on for the purposes of, or in connection with, the exploitation of highway concessions.]

F2 [(5A) For the purposes of this Part, the carrying on of a [F3 highway undertaking] shall be treated as the carrying on of an undertaking by way of trade; and accordingly, references in this Part (except sections 17 and 18) to a trade shall be treated as including references to an undertaking treated by virtue of this subsection as carried on by way of trade.

(5B) For the purposes of this Part, a person carrying on a [F3 highway undertaking] shall be treated as occupying for the purposes of the undertaking any [F4 road in relation to which it is carried on].]

(6) For the purposes of this Part, and the other provisions of this Act which are relevant to this Part, any transfer of the relevant interest in a building or structure otherwise than by way of sale shall be treated as a sale of the interest for a price other than that which it would have fetched if sold on the open market.

(7) If sections 157 and 158 would not apart from this subsection have effect in relation to a transfer treated as a sale by virtue of subsection (6) above, those sections shall have effect in relation to it as if it were a sale falling within section 157(1)(a).

(8) Without prejudice to section 148(1), any reference in this Part to the incurring of expenditure on the construction of a building or structure does not include expenditure on the provision of machinery or plant or on any asset which has been treated for any chargeable period as machinery or plant.

This subsection shall not have effect in relation to any chargeable period F5 ... ending after 26th July 1989.

(9) Where section 16(4) of the 1968 Act (expenditure on preparatory work before the appointed day) applied immediately before the commencement of this Part in relation to any expenditure so that Chapter I of Part I of that Act (apart from section 1) applied to part of the expenditure separately from the remainder of the expenditure, then the provisions of this Part (apart from section 1) shall similarly apply to that part of the expenditure separately from the remainder.

(10) Any reference in this Part to any allowance or charge is, except where the context otherwise requires, a reference to such an allowance or charge under this Part, and a reference to an allowance made or postponed under this Part includes, where the context permits, a reference to an allowance relating to expenditure in respect of an industrial building or structure (or any building or structure treated as an industrial building or structure) made or postponed under any enactment repealed by this Act or by any Act repealed by this Act, notwithstanding that the repealed enactment is not re-enacted in this Act.

Textual Amendments

F1 S. 21(5AA) inserted (with effect in accordance with s. 99(10) of the amending Act) by Finance Act 1995 (c. 4), s. 99(7)

F2 S. 21(5A)(5B) inserted (for any chargeable period or its basis period ending on or after 06.04.1991) by Finance Act 1991 (c. 31), s. 60(6)(10).

F3 Words in s. 21(5A)(5B) substituted (with effect in accordance with s. 99(10) of the amending Act) by Finance Act 1995 (c. 4), s. 99(8)

F4 Words in s. 21(5B) substituted (with effect in accordance with s. 99(10) of the amending Act) by Finance Act 1995 (c. 4), s. 99(8)

F5 Words in Act repealed (with effect in accordance with s. 211(2) of the amending Act) by Finance Act 1994 (c. 9), s. 213(1), Sch. 26 Pt. 5(24)

Modifications etc. (not altering text)

C1 S. 21(6) excluded (19.9.1994) by Coal Industry Act 1994 (c. 21), s. 68(4), Sch. 4 para. 20(2); S.I. 1994/2189, art. 2, Sch.

Marginal Citations

M1 1980 c. 65.

M2 S.I. 1981/607 (N.I.15).