Finance Act, 1988

Farming.

52.—(1) Section 22 (as amended by section 15 of the Finance Act, 1983 ) of the Finance Act, 1974 , is hereby amended—

(a) as respects expenditure incurred on or after the 1st day of April, 1989, by the insertion in subsection (2) after “fences” of “roadways, holding yards, drains or land reclamation”, and the said subsection (2) (apart from the proviso) as so amended, is set out in the Table to this subsection,

and

(b) by the substitution for paragraph (b) in the proviso to subsection (2) of the following paragraph:

“(b) the maximum farm buildings allowance to be made under this section for any chargeable period—

(i) in relation to capital expenditure incurred before the 1st day of April, 1989, shall not exceed three-tenths of that capital expenditure, and

(ii) in relation to capital expenditure incurred on or after the 1st day of April, 1989, shall not exceed one-half of that capital expenditure.”.

TABLE

(2) Where a person to whom this section applies incurs, for the purpose of a trade of farming land occupied by him, any capital expenditure on the construction of farm buildings (excluding a building or part of a building used as a dwelling), fences, roadways, holding yards, drains or land reclamation, or other works, there shall be made to him during a writing-down period of ten years beginning with the chargeable period related to that expenditure, writing-down allowances (in this section referred to as “farm building allowances”) in respect of that expenditure and such allowances shall be made in taxing the trade:

(2) Section 14 of the Finance Act, 1977 , is hereby amended by the insertion in subsection (1) after “the 6th day of April, 1977,” of “and before the 1st day of April, 1989,”.

(3) Section 26 of the Finance Act, 1980 , shall not have effect for any chargeable period commencing after the 5th day of April, 1989.