Finance Act, 1965

Amendment of section 5 of Finance Act, 1946.

2.—In relation to capital expenditure on scientific research incurred on or after the 6th day of April, 1965—

(a) section 5 of the Finance Act, 1946 , shall have effect—

(i) as if in subsection (3) thereof the words “and for each of the four following years of assessment,” and “one-fifth of” were omitted,

(ii) as if paragraphs (a), (b) and (e) of subsection (4) were omitted and the following paragraph were substituted for paragraph (c)—

“(c) an amount equal to the allowance made under this section in respect of that expenditure, or, if the value of the asset immediately before the cessation is less than that allowance, equal to that value, shall be treated as a trading receipt of the trade accruing immediately before the cessation;”,

(iii) as if “the amount of the allowance effectively granted” were substituted for “the total of the allowances granted” in paragraph (d) of subsection (4);

(b) section 33 of the Finance Act, 1959 , shall have effect as if the following definition were substituted for the definition of “scientific research allowance”:

“‘scientific research allowance’ means, in relation to any expenditure, the amount of any allowance made in respect of that expenditure under subsection (3) of section 5 of the Finance Act, 1946 , reduced by any amount treated as a trading receipt pursuant to paragraph (c) of subsection (4) of the said section as it applies to expenditure incurred on or after the 6th day of April, 1965;”.