Finance Bill 2002
Amendment 94 Page 251 Line 4
Amendment 95 Page 251 Line 6
Amendment 96 Page 251 Line 8
Amendment 97 Page 251 Line 11
Mr Andrew Smith (Lab, Oxford East)
Schedule 21, page 251, line 4, leave out ?within the relevant period?.
Schedule 21, page 251, line 6, leave out ?not? and insert ?at no time in the relevant period?.
Schedule 21, page 251, line 8, after ?is? insert ?at any time in the relevant period?.
Schedule 21, page 251, line 11, leave out from ?periods? to second ?the? in line 14 and insert ?, beginning with the incurring of the expenditure, first ends, namely-
(a) the period ending with the fifth anniversary of the incurring of the expenditure, or
(b) the period ending with the day preceding?.
EXPLANATORY NOTE
SUMMARY
1. The purpose of these four linked technical amendments is to improve the drafting of new section 45G of the Capital Allowances Act 2001 (introduced in Schedule 21, paragraph 4), to correct a small technical defect and to avoid any ambiguity of meaning.
DETAILS OF THE AMENDMENT
2. Amendments 1 to 3 revise the drafting of Schedule 21, paragraph 4 (1) which introduces new section 45G of the Capital Allowances Act 2001. This is to make absolutely clear the limited occasions when relief should not be given, or should be withdrawn. The first disqualifying factor is if the plant and machinery is not taken into use at all within the ring fence trade during the relevant period - but it is not necessary that the plant and machinery should be used continuously. The second disqualifying factor is if the plant or machinery is used at any time for a purpose outside the ring fence trade during the relevant period.
3. Amendment 4 revises the drafting of Schedule 21, paragraph 4 (2) which defines the ?relevant period? which is the subject of the 5 year rule. Currently, subsection (2)(b) has an ending but not a beginning.
BACKGROUND
4. The Law Society and others have queried the exact meaning of new s45G, fearing that the plant and machinery have to be used continuously or the allowance would be lost.