165 Abandonment expenditure within 3 years of ceasing ring fence tradeU.K.
(1)This section applies if—
(a)a person (“the former trader”) has ceased to carry on a ring fence trade,
(b)the former trader incurs abandonment expenditure F1... within the post-cessation period, and
(c)the abandonment expenditure is not otherwise deductible in calculating the income of the former trader for any tax purpose.
(2)“The post-cessation period” means the period of 3 years immediately following the last day on which the former trader carried on the ring fence trade.
(3)If this section applies—
(a)an amount equal to the relevant abandonment cost is allocated to the appropriate pool for the chargeable period in which the former trader ceased to carry on the ring fence trade, and
(b)any amount received within the post-cessation period for the remains of the plant or machinery does not constitute income of the former trader for any tax purpose.
(4)In subsection (3)—
“the appropriate pool” means the pool to which the expenditure on the demolished plant or machinery has been allocated, and
“the relevant abandonment cost” means the amount by which the abandonment expenditure exceeds any amounts received within the post-cessation period for the remains of the plant or machinery.
(5)All such adjustments, by discharge or repayment of tax or otherwise, are to be made as are necessary to give effect to this section.
Textual Amendments
F1Words in s. 165(1)(b) repealed (retrospectively) by Finance Act 2001 (c. 9), s. 68, 110, Sch. 20 Pt. 2 para. 8, Sch. 33 Pt. 2(5), Note 2, (with effect as mentioned in Sch. 20 para. 9(1)(5)(8))