SCHEDULES

SCHEDULE 1U.K.Consequential amendments

Part 2 U.K.Other enactments

Capital Allowances Act 2001 (c. 2)U.K.

569(1)Amend section 529 (giving effect to allowances and charges) as follows.U.K.

(2)In subsection (1) for “a Schedule A business” substitute “ a UK property business, or a Schedule A business, ”.

(3)After that subsection insert—

(1A)If the person entitled or liable to an allowance or charge for a chargeable period is within the charge to income tax in respect of the allowance or charge and he was not carrying on a UK property business 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 such a 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 (2)—

(a)for the words from the beginning to “chargeable period” substitute “ If the person entitled or liable to an allowance or charge for a chargeable period is a company within the charge to corporation tax in respect of the allowance or charge and it ”,

(b)for “him” substitute “ the company ”, and

(c)for “he” substitute “ it ”.