15A Balancing charge after cessation of trade.

1

This section applies where:

a

a balancing charge falls to be made as provided in section 15 on any person in respect of a building or structure which is temporarily out of use but is deemed by virtue of subsection (1) of that section still to be an industrial building or structure; and

b

when the building or structure was last in use, it was in use as an industrial building or structure for the purposes of a trade which was carried on by that person but which has since been permanently discontinued.

2

Where this section applies, the amount of the balancing charge shall be treated for the purposes of section 105 of the principal Act (allowable deductions) as a sum received by that person which is chargeable to tax under section 103 or 104(1) of the principal Act (charges on receipts after discontinuance), and accordingly any loss, expense, debit or capital allowance such as is referred to in section 105(1) may be deducted from the amount of the balancing charge.

3

Nothing in subsection (2) above shall prevent any amounts allowable under any other provisions of the Tax Acts from being deducted from the amount of the balancing charge.

4

Section 15(3) shall apply for the purposes of this section.

6

If a building (“the old building”) is destroyed or irreparably damaged, and all or part of a capital sum received by way of compensation for the destruction or damage, or under a policy of insurance of the risk of the destruction or damage, is applied by the recipient in constructing or otherwise acquiring a replacement building situated on other land (“the new building”), then for the purposes of subsections (4) and (5) above each of the old building and the new building shall be regarded as an asset separate from the land on which it is or was situated and the old building shall be treated as lost or destroyed.

7

For the purposes of subsection (6) above:

a

references to a building include references to any permanent or semi-permanent structure in the nature of a building; and

b

the reference to a sum applied in acquiring the new building does not include a reference to a sum applied in acquiring the land on which the new building is situated; and

c

all necessary apportionments shall be made of any expenditure, compensation or consideration, and the method of apportionment shall be such as is just and reasonable.

8

This section shall apply in relation to a wasting asset with the following modifications:

a

paragraphs (b) and (c) of subsection (1) above, and subsection (2) above, shall not apply; and

b

in subsections (1) and (3) above, the amount of the expenditure from which the deduction is to be made shall be the amount which would have been allowable under Chapter III of this Part if the asset had been disposed of immediately after the application of the capital sum.

2

Where the owner of an asset which has become of negligible value makes a claim to that effect:

a

this Act shall apply as if the claimant had sold, and immediately reacquired, the asset at the time of the claim or (subject to paragraphs (b) and (c) below) at any earlier time specified in the claim, for a consideration of an amount equal to the value specified in the claim.

b

An earlier time may be specified in the claim if:

i

the claimant owned the asset at the earlier time; and

ii

the asset had become of negligible value at the earlier time; and either

iii

for capital gains tax purposes the earlier time is not more than two years before the beginning of the year of assessment in which the claim is made; or

iv

for corporation tax purposes the earlier time is on or after the first day of the earliest accounting period ending not more than two years before the time of the claim.

c

Section 93 of and Schedule 12 to the M2Finance Act 1994 (indexation losses and transitional relief) shall have effect in relation to an asset to which this section applies as if the sale and reacquisition occurred at the time of the claim and not at any earlier time.

3

This section shall apply on the death of the person entitled to any annuity payable out of, or charged on, settled property or the income of settled property as it applies on the death of a person whose interest in possession in the whole or any part of settled property terminates on his death.

4

Where, in the case of any entitlement to an annuity created by a settlement some of the settled property is appropriated by the trustees as a fund out of which the annuity is payable, and there is no right of recourse to, or to the income of, settled property not so appropriated, then without prejudice to subsection (5) below, the settled property so appropriated shall, while the annuity is payable, and on the occasion of the death of the person entitled to the annuity, be treated for the purposes of this section as being settled property under a separate settlement.

7

In relation to the expression “the original qualifying period”, the questions whether a disposal is a qualifying disposal and whether the period relating to that disposal is a qualifying period shall be determined without regard to the requirement that the length of the period be at least one year.

8

This paragraph shall not apply if the extended qualifying period resulting from the operation of subparagraphs (1) to (7) would be a period of less than one year.

3A

For the purposes of subsection (3) above, an earlier time may be specified in the claim if:

a

the amount to which that subsection applies was also irrecoverable at the earlier time; and either

b

for capital gains tax purposes the earlier time falls not more than two years before the beginning of the year of assessment in which the claim is made; or

c

for corporation tax purposes the earlier time falls on or after the first day of the earliest accounting period ending not more than two years before the time of the claim.

8A

For the purposes of subsection (2) above, an earlier time may be specified in the claim if:

a

the condition which was fulfilled at the time of the claim was also fulfilled at the earlier time; and either

b

for capital gains tax purposes the earlier time falls not more than two years before the beginning of the year of assessment in which the claim is made; or

c

for corporation tax purposes the earlier time falls on or after the first day of the earliest accounting period ending not more than two years before the time of the claim.

Allowance for lost or spoiled instruments

12A Lost or spoiled instruments.

1

This section applies where the Commissioners are satisfied that:

a

an instrument which was executed and duly stamped (“the original instrument”) has been accidentally lost or spoiled; and

b

in place of the original instrument, another instrument made between the same persons and for the same purpose (“the replacement instrument”) has been executed; and

c

an application for relief under this section is made to the Commissioners; and either

d

where the original instrument has been lost, the applicant undertakes to deliver it up to the Commissioners to be cancelled if it is subsequently found; or

e

where the original instrument has been spoiled:

i

the application is made within two years after the date of the original instrument, or if it is not dated, within two years after the time when it was executed, or within such further time as the Commissioners may allow; and

ii

no legal proceeding has been commenced in which the original instrument has been or could or would have been given or offered in evidence; and

iii

the original instrument is delivered up to the Commissioners to be cancelled.

2

Where this section applies:

a

the replacement instrument shall not be chargeable with any duty, but shall be stamped with the duty with which it would otherwise have been chargeable in accordance with the law in force at the time when it was executed, and shall be deemed for all purposes to be duly stamped; and

b

if any duty, interest, fine or penalty was paid in respect of the replacement instrument before the application was made, the Commissioners shall pay to such person as they consider appropriate an amount equal to the duty, interest, fine or penalty so paid.

3

For the purposes of this section the Commissioners may require the applicant to produce such evidence by statutory declaration or otherwise as they think fit.