|
| |
|
(7) | Subsection (8) applies in relation to an additional VAT liability incurred on or |
| |
after the day this section comes into force which under section 235 of CAA 2001 |
| |
is treated as qualifying expenditure. |
| |
(8) | If the original expenditure (within the meaning of that section) was first-year |
| |
qualifying expenditure by virtue of a provision repealed by subsections (2) to |
| 5 |
(4), Chapter 18 of Part 2 of that Act (additional VAT liabilities and rebates) |
| |
applies to the additional VAT liability as if that provision were not so repealed. |
| |
74 | Cars with low carbon dioxide emissions |
| |
(1) | Section 45D of CAA 2001 (expenditure on cars with low carbon dioxide |
| |
emissions) is amended as follows. |
| 10 |
(2) | In subsection (1)(a), for “2008” substitute “2013”. |
| |
(3) | In subsection (4), for “120” substitute “110”. |
| |
(4) | In consequence of the amendment made by subsection (2), in section 60(2)(b) |
| |
of FA 2002 (period for which section 578A(2A) and (2B) of ICTA have effect), |
| |
for “2008” (in both places) substitute “2013”. |
| 15 |
(5) | The amendment made by subsection (3) has effect in relation to expenditure |
| |
incurred on or after 1 April 2008. |
| |
(6) | But in relation to expenditure incurred on the hiring of a car— |
| |
(a) | for a period of hire which begins on or before 31 March 2008, and |
| |
(b) | under a contract entered into on or before 31 March 2008, |
| 20 |
| section 578A of ICTA applies on and after 1 April 2008 as if the amendment |
| |
made by subsection (3) did not have effect. |
| |
75 | Gas refuelling stations |
| |
(1) | Section 45E of CAA 2001 (expenditure on plant or machinery for gas refuelling |
| |
station) is amended as follows. |
| 25 |
(2) | In subsection (1)(a), for “2008” substitute “2013”. |
| |
(3) | After “natural gas” (in each place) insert “, biogas”. |
| |
(4) | In subsection (4), before the definition of “gas refuelling station” insert— |
| |
““biogas” means gas produced by the anaerobic conversion of organic |
| |
matter and used for propelling vehicles;”. |
| 30 |
(5) | The amendments made by subsections (3) and (4) have effect in relation to |
| |
expenditure incurred on or after 1 April 2008. |
| |
76 | First-year tax credits |
| |
Schedule 25 contains provision about the payment of first-year tax credits to |
| |
companies in connection with certain first-year qualifying expenditure. |
| 35 |
|
| |
|
| |
|
Plant and machinery: writing-down allowances and pools |
| |
77 | Main rate of writing down allowance |
| |
(1) | Section 56 of CAA 2001 (amount of allowances and charges) is amended as |
| |
| |
(2) | In subsection (1), for “25%” substitute “20%”. |
| 5 |
(3) | After that subsection insert— |
| |
“(1A) | But in relation to qualifying expenditure incurred wholly for the |
| |
purposes of a ring fence trade in respect of which tax is chargeable |
| |
under section 501A of ICTA (supplementary charge in respect of ring |
| |
fence trades), the amount of the writing-down allowance to which a |
| 10 |
person is entitled for a chargeable period is 25% of the amount by |
| |
| |
(4) | In subsection (2), for “Subsection (1) is” substitute “Subsections (1) and (1A) |
| |
| |
(5) | Part 10 of Schedule 22 to FA 2000 (companies within tonnage tax: capital |
| 15 |
allowances in respect of ship leasing) is amended as follows. |
| |
(6) | In each of the following provisions, for “25%” substitute “20%”— |
| |
(a) | paragraph 94(3)(a) and (4), |
| |
| |
(c) | paragraph 97(2) and (3), |
| 20 |
| |
| |
| |
(a) | in sub-paragraph (4), for “25%” substitute “the appropriate rate”, and |
| |
(b) | after that sub-paragraph insert— |
| 25 |
“(5) | The appropriate rate is 20%; but if for any part of the period |
| |
mentioned in sub-paragraph (4) the rate of writing-down |
| |
allowance to which the lessor would have been entitled |
| |
under section 56(1) of the Capital Allowances Act 2001 if |
| |
paragraph 94 had not applied was more than 20%, for that |
| 30 |
part of the period that rate is the appropriate rate.” |
| |
(8) | The amendments made by this section have effect in relation to chargeable |
| |
| |
(a) | beginning on or after the relevant date, and |
| |
(b) | beginning before, and ending on or after, the relevant date. |
| 35 |
(9) | But in respect of a chargeable period within subsection (8)(b), they apply as if |
| |
| |
(a) | section 56(1) of CAA 2001, |
| |
(b) | the provisions listed in subsection (6), and |
| |
(c) | paragraph 99(5) of Schedule 22 to FA 2000, |
| 40 |
| the references to 20% were to x%. |
| |
|
| |
|
| |
|
(10) | For the purposes of subsection (9)—![equation: equal[char[x],plus[(*n*)id[cross[(*n*)num[25.0000000000000000,"25"],over[(*n*)times[
char[(*n*)B],char[R],char[D]],times[char[(*n*)C],char[P]]]]],id[cross[(*n*)num[20.0000000000000000,
"20"],over[(*n*)times[char[(*n*)A],char[R],char[D]],times[char[(*n*)C],char[P]]]]]]]](missing.gif) |
| |
| Where x would be a figure with more than 2 decimal places, it is to be rounded |
| |
up to the nearest second decimal place. |
| |
| |
BRD is the number of days in the chargeable period before the relevant |
| 5 |
| |
ARD is the number of days in the chargeable period on and after the |
| |
| |
CP is the number of days in the chargeable period. |
| |
(12) | The relevant date is— |
| 10 |
(a) | for corporation tax purposes, 1 April 2008, and |
| |
(b) | for income tax purposes, 6 April 2008. |
| |
| |
(1) | CAA 2001 is amended as follows. |
| |
(2) | In section 56(2) (amount of allowances and charges), before paragraph (a) |
| 15 |
| |
“(za) | section 56A (small main pools and special rate pools),”. |
| |
(3) | After section 56 insert— |
| |
“56A | Writing-down allowances for small pools |
| |
(1) | This section applies in relation to the main pool and the special rate |
| 20 |
| |
(2) | Where the amount by which AQE exceeds TDR is less than or equal to |
| |
the small pool limit, the amount of the writing-down allowance to |
| |
which a person is entitled for a chargeable period is the amount by |
| |
| 25 |
(3) | The small pool limit is £1,000, except that— |
| |
(a) | if the chargeable period is more or less than a year, it is |
| |
proportionately increased or reduced, and |
| |
(b) | if the qualifying activity has been carried on for part only of the |
| |
chargeable period, it is proportionately reduced. |
| 30 |
(4) | A person claiming a writing-down allowance under this section may |
| |
require the allowance to be reduced to a specified amount.” |
| |
(4) | In section 59(1) (definition of unrelieved qualifying expenditure)— |
| |
(a) | after “that period” insert “(a)”, and |
| |
(b) | after “TDR” insert “, and |
| 35 |
(b) | where section 56A(2) applies, the person does not claim |
| |
a writing-down allowance of the amount by which AQE |
| |
| |
(5) | The amendments made by this section have effect— |
| |
(a) | for corporation tax purposes, in relation to chargeable periods |
| 40 |
beginning on or after 1 April 2008, and |
| |
|
| |
|
| |
|
(b) | for income tax purposes, in relation to chargeable periods beginning on |
| |
| |
79 | Special rate expenditure and the special rate pool |
| |
Schedule 26 contains provision about special rate expenditure and the special |
| |
| 5 |
80 | Existing long-life asset expenditure treated as special rate expenditure |
| |
(1) | This section applies in relation to long-life asset expenditure— |
| |
(a) | incurred before the relevant date, and |
| |
(b) | allocated to a pool in a chargeable period beginning before the relevant |
| |
| 10 |
(2) | In relation to a transitional chargeable period, section 102 of CAA 2001 applies |
| |
as if the percentage figure specified in subsection (1) of that section were x%, |
| |
where—![equation: equal[char[x],plus[(*n*)id[cross[(*n*)num[6.0000000000000000,"6"],over[(*n*)times[
char[(*n*)B],char[R],char[D]],times[char[(*n*)C],char[P]]]]],id[cross[(*n*)num[10.0000000000000000,
"10"],over[(*n*)times[char[(*n*)A],char[R],char[D]],times[char[(*n*)C],char[P]]]]]]]](missing.gif) |
| |
| Where x would be a figure with more than 2 decimal places, it is to be rounded |
| |
up to the nearest second decimal place. |
| 15 |
| |
BRD is the number of days in the chargeable period before the relevant |
| |
| |
ARD is the number of days in the chargeable period on and after the |
| |
| 20 |
CP is the number of days in the chargeable period. |
| |
(4) | Any unrelieved qualifying expenditure in a long-life asset pool at the end of— |
| |
(a) | a transitional chargeable period, or |
| |
(b) | a chargeable period which ends immediately before the relevant date, |
| |
| is to be carried forward to the special rate pool. |
| 25 |
(5) | In subsequent chargeable periods, expenditure so carried forward is to be |
| |
treated for the purposes of CAA 2001 as if it were special rate expenditure |
| |
carried forward in the special rate pool from the chargeable period mentioned |
| |
| |
(6) | Any unrelieved qualifying expenditure in a single asset pool at the end of— |
| 30 |
(a) | a transitional chargeable period, or |
| |
(b) | a chargeable period which ends immediately before the relevant date, |
| |
| is in subsequent chargeable periods to be treated for the purposes of CAA 2001 |
| |
as if it were special rate expenditure carried forward in the single asset pool |
| |
from that chargeable period. |
| 35 |
(7) | Where expenditure is treated as special rate expenditure because of this |
| |
section, for the purposes of section 104E of CAA 2001— |
| |
(a) | the reference in subsection (1)(a) of that section to section 104D of CAA |
| |
2001 includes a reference to section 102 of that Act (writing-down |
| |
allowances in respect of long-life asset expenditure), and |
| 40 |
(b) | the allowances that could have been made to the taxpayer in respect of |
| |
the expenditure include allowances that could have been made under |
| |
|
| |
|
| |
|
section 102 of that Act for chargeable periods before that in which the |
| |
expenditure was first treated as special rate expenditure. |
| |
(8) | A “transitional chargeable period” is one which begins before, and ends on or |
| |
after, the relevant date. |
| |
(9) | “The relevant date” means— |
| 5 |
(a) | for corporation tax purposes, 1 April 2008, and |
| |
(b) | for income tax purposes, 6 April 2008. |
| |
(10) | Expressions used in this section and in CAA 2001 have the same meaning in |
| |
this section as in that Act. |
| |
Industrial and agricultural buildings allowances |
| 10 |
81 | Abolition of allowances from 2011 |
| |
(1) | Parts 3 and 4 of CAA 2001 (industrial buildings allowances and agricultural |
| |
buildings allowances) do not apply in relation to expenditure incurred on or |
| |
| |
(2) | Omit those Parts of that Act. |
| 15 |
(3) | The amendment made by subsection (2) has effect in relation to chargeable |
| |
periods beginning on or after the relevant date. |
| |
(4) | The relevant date is— |
| |
(a) | for corporation tax purposes, 1 April 2011, and |
| |
(b) | for income tax purposes, 6 April 2011. |
| 20 |
(5) | Schedule 27 contains amendments and savings related to this section. |
| |
82 | Phasing out of allowances before abolition |
| |
(1) | For a chargeable period to which this section applies (“a transitional chargeable |
| |
period”), a person’s entitlement to a writing-down allowance under Part 3 or 4 |
| |
of CAA 2001 in respect of qualifying expenditure is to be determined in |
| 25 |
accordance with this section. |
| |
(2) | This section does not apply to a writing-down allowance in respect of |
| |
qualifying enterprise zone expenditure. |
| |
(3) | If the whole of a transitional chargeable period falls within a financial year |
| |
listed in column 1 of the table (for corporation tax purposes) or a tax year listed |
| 30 |
in column 2 of the table (for income tax purposes), the writing-down allowance |
| |
to which the person is entitled for that chargeable period is—![equation: cross[times[char[W],char[D],char[A]],char[P]]](missing.gif) |
| |
| |
| WDA is the writing-down allowance to which the person would be |
| |
entitled for the chargeable period apart from this section, and |
| 35 |
| P is the percentage specified in relation to that year in column 3 of the |
| |
| |
(4) | If subsection (3) does not apply in relation to a transitional chargeable period, |
| |
the writing-down allowance to which the person is entitled for that chargeable |
| |
period is to be determined by— |
| 40 |
|
| |
|
| |
|
(a) | calculating the apportioned writing-down allowance for each financial |
| |
year (for corporation tax purposes) or tax year (for income tax |
| |
purposes) in which part of the chargeable period falls, and |
| |
(b) | adding the amounts of the apportioned writing-down allowance for |
| |
| 5 |
(5) | For the purposes of Part 3 of CAA 2001 (industrial buildings), the apportioned |
| |
writing-down allowance for a financial year or tax year in which part of a |
| |
transitional chargeable period falls is—![equation: cross[over[times[char[D],char[C],char[P],char[Y]],times[char[D],char[C],char[P]]],
cross[times[char[W],char[D],char[A]],char[P]]]](missing.gif) |
| |
| |
| DCPY is the number of days in the chargeable period which fall in that |
| 10 |
| |
| DCP is the number of days in the chargeable period, |
| |
| WDA is the writing-down allowance to which the person would be |
| |
entitled for the chargeable period apart from this section, and |
| |
| P is the percentage specified in relation to that year in column 3 of the |
| 15 |
| |
(6) | For the purposes of Part 4 of CAA 2001 (agricultural buildings), the |
| |
apportioned writing-down allowance for a financial year or tax year in which |
| |
part of a transitional chargeable period falls is—![equation: cross[over[times[char[R],char[D],char[C],char[P],char[Y]],times[char[R],char[D],
char[C],char[P]]],cross[times[char[W],char[D],char[A]],char[P]]]](missing.gif) |
| |
| 20 |
| RDCPY is the number of relevant days in the chargeable period which |
| |
| |
| RDCP is the number of relevant days in the chargeable period, |
| |
| WDA is the writing-down allowance to which the person would be |
| |
entitled for the chargeable period apart from this section, and |
| 25 |
| P is the percentage specified in relation to that year in column 3 of the |
| |
| |
(7) | The relevant days in the chargeable period are the days in that period for which |
| |
the person was entitled to the relevant interest in relation to the qualifying |
| |
expenditure (within the meaning of Part 4 of CAA 2001). |
| 30 |
(8) | For the purposes of CAA 2001, the residue of the qualifying expenditure at any |
| |
time is to be calculated as if the writing-down allowance made to a person |
| |
under Part 3 or 4 of that Act in respect of the qualifying expenditure for any |
| |
transitional chargeable period were the writing-down allowance which would |
| |
have been made apart from this section. |
| 35 |
(9) | This section applies— |
| |
(a) | for corporation tax purposes, to chargeable periods which begin before |
| |
the relevant date and end on or after 1 April 2008, and |
| |
(b) | for income tax purposes, to chargeable periods which begin before the |
| |
relevant date and end on or after 6 April 2008. |
| 40 |
(10) | In this section references to the table are to the following table— |
| |
|
| |
|
| |
|
|
| |
“the relevant date” has the same meaning as in section 81, and |
| 15 |
“qualifying expenditure”, in relation to a writing-down allowance under |
| |
Part 3 or 4 of CAA 2001, means the qualifying expenditure in respect of |
| |
which the allowance is made. |
| |
83 | Qualifying enterprise zone expenditure: transitional provision |
| |
(1) | For a chargeable period which begins before, and ends on or after, the relevant |
| 20 |
date, a person’s entitlement to a writing-down allowance under Part 3 of CAA |
| |
2001 in respect of qualifying enterprise zone expenditure is to be determined |
| |
in accordance with subsection (2). |
| |
(2) | The writing-down allowance to which the person is entitled is—![equation: cross[over[times[char[D],char[C],char[P],char[B]],times[char[D],char[C],char[P]]],
times[char[W],char[D],char[A]]]](missing.gif) |
| |
| 25 |
| DCPB is the number of days in the chargeable period which fall before |
| |
| |
| DCP is the number of days in the chargeable period, and |
| |
| WDA is the writing-down allowance to which the person would be |
| |
entitled for the chargeable period apart from this section. |
| 30 |
(3) | In this section “the relevant date” has the same meaning as in section 81. |
| |
84 | Phasing out of industrial buildings allowance: anti-avoidance |
| |
(1) | In CAA 2001, after section 313 insert— |
| |
“313A | Calculation of allowance after sale of relevant interest: anti-avoidance |
| |
(1) | This section applies where— |
| 35 |
(a) | there is a sale of the relevant interest in the building which is a |
| |
balancing event to which section 314 applies, |
| |
(b) | the buyer and seller have different chargeable periods, |
| |
(c) | the control test (within the meaning of section 567) is met, and |
| |
|
| |
|