Part IIU.K. Machinery and Plant

Modifications etc. (not altering text)

C9Pt. 2 modified (with application in accordance with Sch. 12 para. 11(1) of the amending Act) by Finance Act 1997 (c. 16), Sch. 12 para. 11(3)(b) (with Sch. 12 paras. 13, 14)

Chapter VIIU.K. Miscellaneous Expenditure

67 Expenditure on thermal insulation.U.K.

(1)If a person carrying on a trade has incurred expenditure in adding any insulation against loss of heat to any industrial building or structure occupied by him for the purposes of that trade, this Part shall apply as if the expenditure were capital expenditure incurred on the provision of machinery or plant for the purposes of the trade, and as if the machinery or plant had, in consequence of his incurring the expenditure, belonged to him, and as if the disposal value of the machinery or plant were nil.

(2)If a person has incurred expenditure in adding any insulation against any loss of heat to any industrial building or structure let by him otherwise than in the course of a trade, this Part shall apply as if the expenditure were capital expenditure incurred in providing machinery or plant first let by that person, otherwise than in the course of a trade, at the time when the expenditure was incurred, and as if the property comprised in the lease of the building or structure had as from that time included the machinery or plant, and as if the disposal value of the machinery or plant were nil.

(3)Any allowance made by virtue of section 61(1) in a case where it applies by virtue of subsection (2) above F1... [F2shall be available (notwithstanding section 73(2))] primarily against the following income, that is to say—

(a)income taxed under Schedule A in respect of any premises which at any time in the chargeable period for which the allowance falls to be made consist of or include an industrial building or structure; or

(b)income which is the subject of a balancing charge under Part I.

[F3(3A)Subsections (2) and (3) above have effect for the purposes of corporation tax only.]

(4)In this section “industrial building or structure” has the meaning given by section 18.

[F4(4A)Where the letting of any industrial building or structure by any person is deemed by virtue of section 28A to be in the course of a trade, subsection (1) above shall have effect as if that person occupied that building or structure for the purposes of that trade throughout the period for which it is let by him.]

(5)This section applies to expenditure to which section 1 applies in accordance with section 2 but does not apply to any other expenditure to which section 1 applies or to any expenditure to which section 6 applies.

(6)Subsection (5) above shall not have effect in relation to any chargeable period F5... ending after 26th July 1989.

Textual Amendments

F1Words in s. 67(3) repealed (with effect in accordance with Sch. 15 para. 9 of the amending Act) by Finance Act 1997 (c. 16), Sch. 15 para. 5(1), Sch. 18 Pt. 6(11)

F2Words in s. 67(3) substituted (with effect in accordance with s. 39(4)(5) of the amending Act) by Finance Act 1995 (c. 4), Sch. 6 para. 32

F3S. 67(3A) inserted (with effect in accordance with Sch. 15 para. 9 of the amending Act) by Finance Act 1997 (c. 16), Sch. 15 para. 5(2)

F4S. 67(4A) inserted (with effect in accordance with Sch. 15 para. 9 of the amending Act) by Finance Act 1997 (c. 16), Sch. 15 para. 5(3)

F5Words 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)