Finance Act 2013

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Incentives for certain aviation services facilities.

31.— (1) The Principal Act is amended—

(a) in section 268(1) by deleting “or” where it last occurs in paragraph (l) and by substituting “unit, or” for “unit,” in paragraph (m),

(b) in section 268(1) by inserting the following after paragraph (m):

“(n) for the purposes of a trade which consists of—

(i) the maintenance, repair or overhaul of aircraft used to carry passengers or cargo for hire or reward, or

(ii) the dismantling of aircraft of the kind referred to in subparagraph (i), for the purposes of the salvaging or recycling of parts or materials,”,

(c) in section 268 by inserting the following after subsection (1E):

“(1F) Where the relevant interest in relation to capital expenditure incurred on the construction of a building or structure in use for the purposes specified in subsection (1)(n) is held by a property developer (within the meaning of section 843A) or a person who is connected with the property developer, in the case where either of such persons incurred the capital expenditure on the construction of that building or structure, or such expenditure was incurred by any other person connected with the property developer, then, notwithstanding that subsection, that building or structure shall not, as regards a claim for any allowance under this Part by any such person, be regarded as an industrial building or structure for the purposes of this Part, irrespective of whether that relevant interest is held by the person in a sole capacity or jointly or in partnership with another person or persons.”,

(d) in section 268(9) by deleting “and” where it last occurs in paragraph (i) and by substituting “2008, and” for “2008.” in paragraph (j),

(e) in section 268(9) by inserting the following after paragraph (j):

“(k) by reference to paragraph (n), as respects capital expenditure incurred in the period commencing on the date of the coming into operation of section 31 of the Finance Act 2013 and ending 5 years after that date.”,

(f) in section 272(3) by deleting “and” at the end of paragraph (i) and by substituting “subsection (2)(c), and” for “subsection (2)(c).” in paragraph (j),

(g) in section 272(3) by inserting the following after paragraph (j):

“(k) in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of paragraph (n) of section 268(1), 15 per cent of the expenditure referred to in subsection (2)(c).”,

(h) in section 272(4) by deleting “and” at the end of paragraph (i) and by substituting “that expenditure, and” for “that expenditure.” in paragraph (j),

(i) in section 272(4) by inserting the following after paragraph (j):

“(k) in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of paragraph (n) of section 268(1)—

(i) 7 years beginning with the time when the building or structure was first used, or

(ii) where capital expenditure on the refurbishment of the building or structure is incurred, 7 years beginning with the time when the building or structure was first used subsequent to the incurring of that expenditure.”,

(j) in section 274(1)(b) by deleting “and” at the end of subparagraph (viii) and by substituting “that expenditure, and” for “that expenditure.” in subparagraph (ix)(II),

(k) in section 274(1)(b) by inserting the following after subparagraph (ix):

“(x) in relation to a building or structure which is to be regarded as an industrial building or structure within the meaning of paragraph (n) of section 268(1)—

(I) 7 years after the building or structure was first used, or

(II) where capital expenditure on the refurbishment of the building or structure is incurred, 7 years after the building or structure was first used subsequent to the incurring of that expenditure.”,

(l) in section 316(2C) by substituting “paragraph (g), (i), (j), (l) or (n) of section 268(1) is incurred or not incurred in any of the periods referred to in paragraph (d), (f), (g), (i) or (k) of section 268(9),” for “paragraphs (g), (i), (j) or (l) of section 268(1) is incurred or not incurred in any of the periods referred to in paragraphs (d), (f), (g) and (i) of section 268(9),”,

(m) in Schedule 25B by inserting the following after clause (VII) of paragraph (a)(i) of the matter set out opposite reference number 13:

“(VIII) section 268(1)(n) (inserted by the Finance Act 2013),”,

and

(n) in Schedule 25B by inserting the following after clause (VII) of paragraph (a)(i) of the matter set out opposite reference number 15:

“(VIII) section 268(1)(n) (inserted by the Finance Act 2013),”.

(2) This section comes into operation on such day or days as the Minister for Finance may by order or orders appoint and different days may be appointed for different purposes or for different provisions.