Finance Act, 1994

Amendment of section 40 (capital allowances for certain leased assets) of Finance Act, 1984.

61.—(1) Section 40 of the Finance Act, 1984 , is hereby amended—

(a) in the definition of “the specified capital allowances” (as amended by section 53 of the Finance Act, 1986 ) in subsection (1), by the substitution of “subsection (6), (7), (7A) or (8)” for “subsection (6), (7) or (8)”, and

(b) by the insertion of the following subsection after subsection (7) (inserted by section 53 of the Finance Act, 1986 ):

“(7A) The reference in the definition of ‘the specified capital allowances’ in subsection (1) to machinery or plant to which this subsection applies is a reference to machinery or plant provided for leasing by a lessor to a lessee in the course of the carrying on by the lessor of relevant trading operations within the meaning of section 39A (inserted by the Finance Act, 1981 ), or section 39B (inserted by the Finance Act, 1988 ), of the Finance Act, 1980 , and—

(a) in respect of the expenditure on which no allowance has been, or will be, made under Chapter I of Part XV of the Income Tax Act, 1967 , or

(b) in respect of which no allowance on account of wear and tear falling to be made under section 241 of the Income Tax Act, 1967 , has been, or will be, increased under section 11 of the Finance Act, 1967 , or under section 26 of the Finance Act, 1971 .”.

(2) Subsection (1) shall apply and have effect as respects accounting periods ending on or after the 31st day of December, 1993.