Capital Allowances Act 2001

Expenditure on thermal insulation, safety measures, etc. U.K.

27 Application of Part to thermal insulation, safety measures, etc. U.K.

(1) Subsection (2) has effect in relation to expenditure if—

(a) it is expenditure to which any of sections 28 to 33 applies, and

(b) an allowance under Part 2 or a deduction in respect of the expenditure could not, in the absence of this section, be made in calculating the income from the qualifying activity in question.

(2) This Part (including in particular section 11(4)) applies as if—

(a) the expenditure were capital expenditure on the provision of plant or machinery for the purposes of the qualifying activity in question, and

(b) the person who incurred the expenditure owned plant or machinery as a result of incurring it.

28 Thermal insulation of F1 ... buildings U.K.

(1) This section applies to expenditure if a person carrying on a qualifying activity [F2 other than an ordinary property business or an overseas property business] has incurred it in adding insulation against loss of heat to [F3 a] building occupied by him for the purposes of [F4 the qualifying activity].

(2) This section also applies to expenditure if a person carrying on a qualifying activity consisting of an ordinary [F5 property] business [F6 or an overseas property business] has incurred it in adding insulation against loss of heat to [F7 a] building let by him in the course of the business.

[F8 (2A) Subsection (2) is subject to section 35 (expenditure on plant or machinery for use in dwelling-house not qualifying expenditure).

(2B) This section does not apply to expenditure within subsection (2) if a deduction for that expenditure is allowable—

(a) under section 31ZA of ICTA, or

(b) under section 312 of ITTOIA 2005,

(deductions for expenditure on energy-saving items).

(2C) For the purposes of subsection (2B), whether such a deduction is allowable is to be determined without regard to subsection (1)(e) of the section in question.]

F9 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Word in s. 28 heading omitted (with effect in accordance with s. 71(8) of the amending Act) by virtue of Finance Act 2008 (c. 9), s. 71(6)

F2 Words in s. 28(1) substituted (with effect in accordance with s. 71(8) of the amending Act) by Finance Act 2008 (c. 9), s. 71(2)(a)

F3 Word in s. 28(1) substituted (with effect in accordance with s. 71(8) of the amending Act) by Finance Act 2008 (c. 9), s. 71(2)(b)

F4 Words in s. 28(1) substituted (with effect in accordance with s. 71(8) of the amending Act) by Finance Act 2008 (c. 9), s. 71(2)(c)

F5 Word in s. 28(2) substituted (with effect in accordance with s. 883(1) of the amending Act) by Income Tax (Trading and Other Income) Act 2005 (c. 5), , Sch. 1 para. 531 (with Sch. 2)

F6 Words in s. 28(2) inserted (with effect as mentioned in s. 69(2) of the amending Act) by Finance Act 2001 (c. 9), s. 69(1), Sch. 21 para. 1

F7 Word in s. 28(2) substituted (with effect in accordance with s. 71(8) of the amending Act) by Finance Act 2008 (c. 9), s. 71(3)

F8 S. 28(2A)-(2C) inserted (with effect in accordance with s. 71(8) of the amending Act) by Finance Act 2008 (c. 9), s. 71(4)

F9 S. 28(3) omitted (with effect in accordance with s. 71(8) of the amending Act) by virtue of Finance Act 2008 (c. 9), s. 71(5)

F10 29 Fire safety U.K.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F10 S. 29 omitted (with effect in accordance with s. 72(4) of the amending Act) by virtue of Finance Act 2008 (c. 9), s. 72(1)

30 Safety at designated sports grounds U.K.

(1) This section applies to expenditure if a person carrying on a qualifying activity has incurred it in taking required safety precautions in respect of a sports ground which is—

(a) designated under section 1 of the Safety of Sports Grounds Act 1975 (c. 52) as requiring a safety certificate, and

(b) used by him for the purposes of the qualifying activity.

(2) A person takes required safety precautions in respect of the sports ground if—

(a) a safety certificate has been issued under the 1975 Act for the sports ground, and

(b) he takes steps necessary for compliance with the terms and conditions of the safety certificate.

(3) A person also takes required safety precautions in respect of the sports ground if—

(a) he has been sent or given a document by or on behalf of the local authority for the area in which the sports ground is situated,

(b) the document specifies steps which, if taken, would—

(i) be taken into account by the local authority in deciding what terms and conditions to include in a safety certificate to be issued under the 1975 Act for the sports ground, or

(ii) lead to the amendment or replacement of a safety certificate issued or to be issued under the 1975 Act for the sports ground, and

(c) he takes the steps specified in the document.

31 Safety at regulated stands at sports grounds U.K.

(1) This section applies to expenditure if a person carrying on a qualifying activity has incurred it in taking required safety precautions in respect of a stand at a sports ground—

(a) the use of which requires a safety certificate under Part III of the Fire Safety and Safety of Places of Sport Act 1987 (c. 27), and

(b) which he uses for the purposes of the qualifying activity.

(2) A person takes required safety precautions in respect of the stand at the sports ground if—

(a) a safety certificate has been issued under the 1987 Act for the stand, and

(b) he takes steps necessary for compliance with the terms and conditions of the safety certificate.

(3) A person also takes required safety precautions in respect of the stand at the sports ground if—

(a) he has been sent or given a document by or on behalf of the local authority for the area in which the sports ground is situated,

(b) the document specifies steps which, if taken, would—

(i) be taken into account by the local authority in deciding what terms and conditions to include in a safety certificate to be issued under the 1987 Act for the stand, or

(ii) lead to the amendment or replacement of a safety certificate issued or to be issued under the 1987 Act for the stand, and

(c) he takes the steps specified in the document.

32 Safety at other sports grounds U.K.

(1) This section applies to expenditure if a person carrying on a qualifying activity has incurred it in taking required safety precautions in respect of a sports ground—

(a) which is of a kind described in section 1(1) of the Safety of Sports Grounds Act 1975 (c. 52) but in respect of which no designation order under that section is in force at the time when he takes those precautions, and

(b) which he uses for the purposes of the qualifying activity,

and the expenditure is not incurred in respect of a sports ground stand which is within section 31(1)(a).

(2) A person takes required safety precautions in respect of the sports ground if he takes steps which the relevant local authority certify would have fallen within section 30(2) or (3) if—

(a) a designation order under section 1 of the 1975 Act had then been in force, and

(b) a safety certificate had then been issued or applied for under the 1975 Act.

(3) Any provision of regulations made under section 6(1)(b) of the 1975 Act (power of local authorities to charge fees) applies, with the necessary modifications, to the issue of a certificate for the purposes of subsection (2) as it applies to the issue of a safety certificate.

(4) In subsection (2)—

(a) “the relevant local authority” means the local authority for the area in which the sports ground is situated, and

(b) “local authority” has the same meaning as in the 1975 Act.

33 Personal security U.K.

(1) This section applies to expenditure if—

(a) it is incurred by an individual or partnership of individuals in connection with the provision for, or for use by, the individual, or any of the individuals, of a security asset,

(b) the individual or partnership is carrying on a relevant qualifying activity, and

(c) the special threat conditions are met.

(2) The special threat conditions are that—

(a) the asset is provided or used to meet a threat which—

(i) is a special threat to the individual’s personal physical security, and

(ii) arises wholly or mainly because of the relevant qualifying activity, and

(b) the person incurring the expenditure—

(i) has the sole object of meeting that threat in incurring that expenditure, and

(ii) intends the asset to be used solely to improve personal physical security.

(3) If—

(a) the person incurring the expenditure intends the asset to be used solely to improve personal physical security, but

(b) there is another use which is incidental to improving personal physical security,

that other use is ignored for the purposes of this section.

(4) The fact that an asset improves the personal physical security of any member of the family or household of the individual concerned, as well as that of the individual, does not prevent this section from applying.

(5) If—

(a) the asset is not intended to be used solely to improve personal physical security, but the expenditure incurred on it would otherwise be expenditure to which this section applies, and

(b) the person incurring the expenditure intends the asset to be used partly to improve personal physical security,

this section applies only to the proportion of the expenditure attributable to the intended use to improve personal physical security.

(6) In this section “security asset” means an asset which improves personal security; and here “asset”—

(a) does not include—

(i) a car, ship or aircraft, or

(ii) a dwelling or grounds appurtenant to a dwelling, but

(b) subject to paragraph (a), includes equipment, a structure (such as a wall) and an asset which becomes fixed to land.

(7) Section 81 (extended meaning of “car”) does not apply in relation to subsection (6)(a).

(8) In this section “relevant qualifying activity” means a qualifying activity consisting of—

(a) a trade,

(b) an ordinary [F11 property] business,

(c) a furnished holiday lettings business,

(d) an overseas property business, or

(e) a profession or vocation.

Textual Amendments

F11 Word in s. 33(8)(b) substituted (6.4.2005) by Income Tax (Trading and Other Income) Act 2005 (c. 5) , s. 883(1) , Sch. 1 para. 532 (with Sch. 2 )