30(1)Section 37 of the Capital Allowances Act 1990 (election for certain machinery or plant to be treated as short life assets) shall be amended in accordance with the following provisions of this paragraph.
(2)In subsection (2) (elections)—
(a)in paragraph (c) (election may not be made more than two years after the end of the chargeable period in which the capital expenditure was incurred) for the words following “may not be made” there shall be substituted “after the end of the period specified in subsection (2A) below”; and
(b)the words following paragraph (d) shall cease to have effect.
(3)After that subsection there shall be inserted—
“(2A)The period mentioned in subsection (2) above is—
(a)for the purposes of income tax, the period ending with the first anniversary of the 31st January next following the year of assessment in which ends the chargeable period related to the incurring of the capital expenditure concerned;
(b)for the purposes of corporation tax, the period of two years beginning at the end of the chargeable period related to the incurring of the capital expenditure concerned;
and if different parts of the capital expenditure are incurred at different times, only that part of the expenditure which is first incurred shall be taken into account for the purposes of this subsection.”