Income Tax (Trading and Other Income) Act 2005

Capital Allowances Act 2001 (c. 2)

This section has no associated Explanatory Notes

560(1)Amend section 393T (giving effect to allowances and charges) as follows.

(2)In subsection (2) for “a Schedule A business” substitute “a UK property business, or a Schedule A business,”.

(3)After that subsection insert—

(2A)If the person is within the charge to income tax in respect of the allowance or charge and his interest in the flat is not an asset of a UK property business carried on by him at any time in that period, the allowance or charge is to be given effect by treating him as if he had been carrying on a UK property business in that period and as if—

(a)the allowance were an expense of that business, and

(b)the charge were a receipt of that business.

(4)In subsection (3)—

(a)for “the person's” substitute “the person is a company within the charge to corporation tax in respect of the allowance or charge and its”,

(b)for “him”, in both places where it occurs, substitute “the company”, and

(c)for “he” substitute “it”.