Finance (No. 2) Act 1992

9 (1) This paragraph applies if—

(a) an individual is a qualifying individual for a year of assessment,

(b) the amount of the sums mentioned in paragraph 2(1) above does not exceed the individual’s limit for the year, and

(c) no election that this paragraph shall not apply to the individual for the year has effect under paragraph 10 below.

(2) Where this paragraph applies the following shall be treated as nil for the purposes of the Tax Acts—

(a) the profits or gains of any period which as regards the year is a basis period for a source mentioned in paragraph 2(1) above;

(b) the losses of any such period.

(3) Where this paragraph applies no allowance or balancing charge shall be made for the year to or on the individual under section 24 of the M1 Capital Allowances Act 1990 in respect of any machinery or plant provided for the purposes of any trade from which any of the sums mentioned in paragraph 2(1) above are derived.

(4) In a case where—

(a) apart from this sub-paragraph the preceding provisions of this paragraph would apply, and

(b) the amount of the sums mentioned in paragraph 2(1) above together with the amount of any relevant balancing charges would exceed the individual’s limit for the year,

the preceding provisions of this paragraph shall not apply.

(5) For the purposes of sub-paragraph (4) above a relevant balancing charge is a balancing charge which (apart from this paragraph) would be made for the year on the individual under section 24 of the M2 Capital Allowances Act 1990 in respect of any machinery or plant provided for the purposes of any trade from which any of the sums mentioned in paragraph 2(1) above are derived.

(6) In ascertaining the amount of sums for the purposes of this paragraph no deduction shall be made in respect of expenses or any other matter.

Marginal Citations

M1 1990 c. 1.

M2 1990 c. 1.