Part 1Charges, rates, allowances etc
Capital allowances
12Short-life assets
1
Part 2 of CAA 2001 (plant and machinery allowances) is amended as follows.
2
In section 86 (short-life asset pool)—
a
in subsection (2), for “four-year” (in each place) substitute “
relevant
”
,
b
for subsection (3) substitute—
3
In this Chapter “the relevant cut-off” means—
a
if any of the qualifying expenditure incurred on the provision of the short-life asset was incurred before the designated day, the fourth anniversary of the end of the relevant chargeable period, and
b
in any other case, the eighth anniversary of the end of the relevant chargeable period.
3A
In subsection (3)—
“the designated day” means—
- a
for corporation tax purposes, 1 April 2011, and
- b
for income tax purposes, 6 April 2011;
“the relevant chargeable period” means—
- a
the chargeable period in which the qualifying expenditure was incurred on the provision of the short-life asset, or
- b
if the qualifying expenditure was incurred in different chargeable periods, the first chargeable period in which any of the qualifying expenditure was incurred.
c
in subsection (4), for “four-year” substitute “
relevant
”
.
3
In section 65 (the final chargeable period), in subsection (3), for “four-year” substitute “
relevant
”
.
4
In section 87 (short-life assets provided for leasing), in subsection (1)—
a
in paragraph (b), for “four-year” substitute “
relevant
”
, and
b
in paragraph (c), for “4 years” substitute “
8 years
”
.
5
In section 89 (disposal to connected person), in subsections (1) and (5), for “four-year” (in each place) substitute “
relevant
”
.
6
In Schedule 1 (defined expressions)—
a
at the appropriate place insert—
relevant cut-off (in Chapter 9 of Part 2)
section 86(3)
b
omit the entry for “four-year cut-off (in Chapter 9 of Part 2)”.