Finance Act, 1994

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Capital allowances for industrial buildings or structures.

22.—(1) The Income Tax Act, 1967 , is hereby amended—

(a) in section 254 , by the deletion of subsection (3A) (inserted by the Finance Act, 1990 ),

(b) in section 256, by the renumbering of the existing provision as subsection (1) and by the insertion of the following provision as subsection (2):

“(2) Where a building or structure which is to be an industrial building or structure forms part of a building or is one of a number of buildings in a single development, or forms a part of a building which is itself one of a number of buildings in a single development, there shall be made such apportionment as is necessary of the expenditure incurred on the construction of the whole building or number of buildings, as the case may be, for the purpose of determining the expenditure incurred on the construction of the building or structure which is to be an industrial building or structure.”,

(c) in section 264—

(i) by the substitution of the following paragraphs for paragraph (i) of the proviso to subsection (1):

“(i) in relation to a building or structure which falls to be regarded as an industrial building or structure within the meaning of section 255 (1) (d) by reason of its use as a holiday cottage and in relation to a building or structure which falls to be regarded as an industrial building or structure within the meaning of section 255 (1) (c), this Part shall have effect as if ‘one-tenth’ were substituted for ‘one-fiftieth’ in the foregoing provisions of this subsection, and

(ia) in relation to a building or structure which falls to be regarded as an industrial building or structure within the meaning of section 255 (1) (d), other than a building or structure to which paragraph (i) relates, this Part shall have effect as if ‘fifteen-hundredths’ were substituted for ‘one-fiftieth’ in the foregoing provisions of this subsection, and”,

and

(ii) by the substitution of the following paragraphs for paragraph (i) of the proviso to subsection (3):

“(i) in relation to a building or structure which falls to be regarded as an industrial building or structure within the meaning of section 255 (1) (d) by reason of its use as a holiday cottage and in relation to a building or structure which falls to be regarded as an industrial building or structure within the meaning of section 255 (1) (c), this Part shall have effect as if ‘ten years’ were substituted for ‘fifty years’ in the foregoing provisions of this subsection, and

(ia) in relation to a building or structure which falls to be regarded as an industrial building or structure within the meaning of section 255 (1) (d), other than a building or structure to which paragraph (i) relates, this Part shall have effect as if ‘seven years’ were substituted for ‘fifty years’ in the foregoing provisions of this subsection, and”,

and

(d) in section 265—

(i) by the substitution, in paragraph (c) of subsection (1), of “ceases to be used as an industrial building or structure” for “ceases altogether to be used”, and

(ii) by the substitution of the following paragraphs for paragraph (ii) of the proviso to subsection (1):

“(ii) in relation to a building or structure which falls to be regarded as an industrial building or structure within the meaning of section 255 (1) (d) by reason of its use as a holiday cottage and in relation to a building or structure which falls to be regarded as an industrial building or structure within the meaning of section 255 (1) (c), this Part shall have effect as if ‘ten years’ were substituted for ‘fifty years’ in the foregoing provisions of this subsection, and

(iia) in relation to a building or structure which falls to be regarded as an industrial building or structure within the meaning of section 255 (1) (d), other than a building or structure to which paragraph (ii) relates, this Part shall have effect as if ‘seven years’ were substituted for ‘fifty years’ in the foregoing provisions of this subsection, and”.

(2) (a) Paragraphs (a), (b) and (d) (i) of subsection (1) shall apply and have effect as on and from the 11th day of April, 1994.

(b) Paragraphs (c) and (d) (ii) of subsection (1) shall apply and have effect as respects capital expenditure incurred on the construction of a building or structure on or after the 27th day of January, 1994.