Finance Act 2003

Amendment of section 289 (calculation of balancing allowances and balancing charges in certain cases) of Principal Act.

47.—(1) Section 289 of the Principal Act is amended—

(a) in subsection (6) by substituting “Subject to subsection (6A), where in a case within subsection (5)” for “Where in a case within subsection (5)”, and

(b) by inserting the following after subsection (6):

“(6A) (a) Subsection (6) shall only apply in a case where the donor or seller is connected with the recipient or purchaser.

(b) Notwithstanding paragraph (a), subsection (6) shall not apply in any case where the donor or seller is not a company and the recipient or purchaser is a company.”.

(2) This section shall apply as respects a gift or sale of machinery or plant on or after 6 February 2003.