Finance Act, 1981

Allowance for certain capital expenditure on roads, bridges, etc.

26.—(1) In this section—

“chargeable period” and “chargeable period or its basis period” have the meanings assigned to them by paragraph 1 (2) of the First Schedule to the Corporation Tax Act, 1976 ;

“qualifying period” means the period commencing on the 29th day of January, 1981, and ending on the 31st day of March, 1984;

“relevant agreement” means an agreement between a road authority and another person under section 9 of the Local Government (Toll Roads) Act, 1979 , by virtue of which that other person incurs relevant expenditure;

“relevant expenditure” means capital expenditure incurred by a person during the qualifying period by virtue of a relevant agreement, but does not include any expenditure in respect of which any person is entitled to a deduction, relief or allowance under any provision of the Tax Acts other than this section;

“relevant income” means income which arises to a person by virtue of a relevant agreement;

“road authority” has the meaning assigned to it by the Local Government (Toll Roads) Act, 1979 .

(2) Where a person, having made a claim in that behalf, proves, as respects a chargeable period, that relevant income was receivable by him in that chargeable period or its basis period and that he has incurred relevant expenditure, he shall, subject to subsection (3), be entitled, for the purpose only of ascertaining the amount (if any) of relevant income on which he is to be charged to tax for the chargeable period, to an allowance equal to one-half of the relevant expenditure:

Provided that the aggregate amount of all allowances made to that person under this section in relation to any relevant expenditure shall not exceed an amount equal to one-half of that expenditure.

(3) Where an allowance to which a person is entitled under this section cannot be given full effect for any chargeable period by reason of a want or deficiency of relevant income, then (so long as the person has relevant income), the amount unallowed shall be carried forward to the succeeding chargeable period and the amount so carried forward shall be treated for the purposes of this section, including any further application of this subsection, as the amount of a corresponding allowance for that period.

(4) An appeal to the Appeal Commissioners shall lie on any question arising under this section in like manner as an appeal would lie against an assessment to income tax or corporation tax and the provisions of the Tax Acts relating to appeals shall apply and have effect accordingly.