Finance Act 1998

85 First-year allowances: consequential amendments etc

(1) In each of subsections (4), (6B) and (6C) of section 22 of the [1990 c. 1.] Capital Allowances Act 1990 (first-year allowances), for “subsection (3C)” there shall be substituted “one or more of subsections (3C), (3CA) and (3D)”.

(2) In section 22A of that Act (expenditure of a small company or small business)—

(a) in subsection (4), for the words “parent company”, wherever they occur, there shall be substituted “parent undertaking”; and

(b) in subsection (6), for ““parent company”” there shall be substituted ““parent undertaking””.

(3) In subsection (8) of that section, after paragraph (b) there shall be inserted— “but for the purposes of this section each of those provisions shall be construed as if references, in relation to a group, to the parent company were references to the parent undertaking.

(4) In sections 23(6), 42(9) and 50(3) and (4A) of that Act (which contain provisions relating to the temporary first-year allowances under section 22(3B) and (3C) of that Act), for the words “subsection (3B) or (3C)”, in each place where they occur, there shall be substituted “one or more of subsections (3B), (3C), (3CA) and (3D)”.

(5) In sections 44(5), 46(8) and 48(7) of that Act (which also contain provisions relating to the temporary first-year allowances under section 22(3B) and (3C) of that Act), for the words “or (3C)”, in each place where they occur, there shall be substituted “, (3C), (3CA) or (3D)”.

(6) In section 39(2)(a) of that Act (definition of qualifying purpose), for “subsections (2) to (3C)” there shall be substituted “subsections (2) to (3D)”.

(7) In section 43(5) of that Act (provisions relating to joint lessees in cases involving new expenditure), after “(3C)” there shall be inserted “, (3CA) or (3D)”.

(8) In section 76 of that Act (which modifies the effect of section 75 in cases where machinery or plant has not been used before a sale)—

(a) subsection (3) shall cease to have effect; and

(b) in subsection (4), for “, (2B) and (3)” there shall be substituted “and (2B)”.

(9) Subsections (1) and (4) to (8) above have effect in relation to every chargeable period ending on or after 12th May 1998.

(10) Subject to subsection (11) below, subsections (2) and (3) above have effect in relation to expenditure incurred on or after 12th May 1998.

(11) Subsections (2) and (3) above do not have effect—

(a) for the purpose of determining whether any expenditure is expenditure to which section 22 of that Act applies by virtue of subsection (3C) of that section; or

(b) for the purpose of determining whether any expenditure incurred in pursuance of a contract entered into before 12th May 1998 is expenditure to which that Act applies by virtue of subsection (3D) of that section.