Finance Act 2012

Flat conversion allowances U.K.

36 U.K. Part 4A of CAA 2001 (flat conversion allowances) does not apply—

(a) for corporation tax purposes, in relation to expenditure incurred on or after 1 April 2013, and

(b) for income tax purposes, in relation to expenditure incurred on or after 6 April 2013.

37 U.K. Part 4A of CAA 2001 is repealed.

38 (1) In consequence of the provision made by paragraph 37, CAA 2001 is amended as follows. U.K.

(2) In section 1(2) (allowances for which Act provides), omit paragraph (ca).

(3) In section 2(3) (giving effect to capital allowances), omit the entry relating to section 393T.

(4) In section 567(1) (sales treated as being for alternative amount: introductory), omit “4A,”.

(5) In section 570(1) (elections under section 569: supplementary), omit “or 4A”.

(6) In section 570A(1) (avoidance affecting proceeds of balancing event), omit “4A,”.

(7) In section 573(1) (transfers treated as sales), omit “, 4A”.

(8) In Part 2 of Schedule 1 (list of defined expressions), omit the entries for the following defined expressions—

• “balancing adjustment (in Part 4A)”,

• “balancing event (in Part 4A)”,

• “dwelling (in Part 4A)”,

• “flat (in Part 4A)”,

• “lease and related expressions (in Part 4A)”,

• “proceeds from a balancing event (in Part 4A)”,

• “qualifying building (in Part 4A)”,

• “qualifying flat (in Part 4A)”,

• “relevant interest (in Part 4A)”, and

• “residue of qualifying expenditure (in Part 4A)”.

(9) In Part 2 of that Schedule, in the entry for “sale, transfers under Parts 3A, 4A and 10 treated as”, omit “, 4A”.

39 U.K. In consequence of the provision made by paragraphs 37 and 38, the following provisions are repealed—

(a) in FA 2001, section 67 and Schedule 19,

(b) in ITTOIA 2005, paragraphs 559 and 560 of Schedule 1, and

(c) in CTA 2009, paragraphs 505 to 507 of Schedule 1.

40 (1) The amendments made by paragraphs 37 to 39 have effect— U.K.

(a) for corporation tax purposes, in relation to chargeable periods beginning on or after 1 April 2013, and

(b) for income tax purposes, in relation to chargeable periods beginning on or after 6 April 2013.

(2) But see also—

(a) paragraph 41 (which deals with the case of a company's chargeable period for corporation tax purposes straddling 1 April 2013), and

(b) paragraph 42 (which saves the continued operation of certain provisions).

41 (1) This paragraph applies if, for corporation tax purposes, the chargeable period of a company begins before, and ends on or after, 1 April 2013. U.K.

(2) The company is entitled only to the relevant proportion of any writing-down allowance for that chargeable period to which it would, but for this paragraph, have been entitled under section 393J of CAA 2001.

(3) The relevant proportion is—

where—

A is the number of days in the chargeable period falling before 1 April 2013, and

B is the number of days in the chargeable period.

42 (1) Nothing in paragraph 37 or 40(1) is to affect the operation of— U.K.

(a) section 393I of CAA 2001 (withdrawal of allowance if flat not qualifying flat or if relevant interest sold before flat first let), or

(b) sections 393M to 393P of CAA 2001 (balancing adjustments),

for chargeable periods beginning on or after the relevant date in relation to expenditure incurred before that date.

(2) The relevant date is—

(a) for corporation tax purposes, 1 April 2013, and

(b) for income tax purposes, 6 April 2013.