186 Fixture on which an industrial buildings allowance has been madeU.K.
(1)This section applies if—
(a)a person (“the past owner”) has at any time claimed an allowance to which he [F1was] entitled under Part 3 (industrial buildings allowances) in respect of expenditure which was or included expenditure on the provision of plant or machinery,
(b)the past owner has transferred the interest which [F2was] the relevant interest for the purposes of Part 3, and
(c)the current owner of the plant or machinery makes a claim in respect of expenditure (“new expenditure”) incurred—
(i)on the provision of the plant or machinery, and
(ii)at a time when it is a fixture in the building.
(2)If the new expenditure exceeds the maximum allowable amount, the excess is to be left out of account in determining the current owner’s qualifying expenditure.
(3)[F3If the total consideration for the transfer by the past owner exceeds R,] the maximum allowable amount is—
where—
F is the part of the consideration for the transfer by the past owner that is attributable to the fixture,
T is the total consideration for that transfer, and
R is the residue of qualifying expenditure [F4which would have been] attributable to the relevant interest immediately after that transfer, calculated on the assumption that the transfer was a sale of the relevant interest[F5, had the time immediately after the transfer fallen immediately before the repeal of Part 3 by section 84 of [F6FA] 2008.]
[F7(3A)Where subsection (3) does not apply, the maximum allowable amount is the part of the consideration for the transfer by the past owner that is attributable to the fixture.]
(4)For the purposes of this section the current owner of the plant or machinery is—
(a)the person to whom the past owner transferred the relevant interest, or
(b)any person who is subsequently treated as the owner of the plant or machinery.
(5)In this section “building” and “residue of qualifying expenditure” have the same meaning as [F8for the purposes of Part 3 immediately before its repeal by section 84 of [F9FA] 2008.]
Textual Amendments
F1Word in s. 186(1)(a) substituted (with effect in accordance with Sch. 27 para. 30(2) of the amending Act) by Finance Act 2008 (c. 9), Sch. 27 para. 5(2)
F2Word in s. 186(1)(b) substituted (with effect in accordance with Sch. 27 para. 30(2) of the amending Act) by Finance Act 2008 (c. 9), Sch. 27 para. 5(2)
F3Words in s. 186(3) inserted (with effect in accordance with Sch. 27 para. 30(2) of the amending Act) by Finance Act 2008 (c. 9), Sch. 27 para. 5(3)(a)
F4Words in s. 186(3) inserted (with effect in accordance with Sch. 27 para. 30(2) of the amending Act) by Finance Act 2008 (c. 9), Sch. 27 para. 5(3)(b)(i)
F5Words in s. 186(3) inserted (with effect in accordance with Sch. 27 para. 30(2) of the amending Act) by Finance Act 2008 (c. 9), Sch. 27 para. 5(3)(b)(ii)
F6Word in s. 186(3) substituted (21.7.2009) by Finance Act 2009 (c. 10), s. 126(5)(a)
F7S. 186(3A) inserted (with effect in accordance with Sch. 27 para. 30(2) of the amending Act) by Finance Act 2008 (c. 9), Sch. 27 para. 5(4)
F8Words in s. 186(5) substituted (with effect in accordance with Sch. 27 para. 30(2) of the amending Act) by Finance Act 2008 (c. 9), Sch. 27 para. 5(5)
F9Word in s. 186(5) substituted (21.7.2009) by Finance Act 2009 (c. 10), s. 126(5)(a)