Finance Act, 1983
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Application of section 23 (deduction for certain expenditure on construction of rented residential accommodation) of Finance Act, 1981. |
29—(1) Section 23 (hereafter in this section and in section 30 referred to as “the principal section”) of the Finance Act, 1981 , is hereby amended by the substitution in subsection (1) (a), in the definition of “qualifying period”, of “1987” for “1984”, and the said definition, as so amended, is set out in the Table to this subsection. | |
TABLE | ||
“qualifying period” means the period commencing on the 29th day of January, 1981, and ending on the 31st day of March, 1987; | ||
(2) For the purposes of relief under the principal section for expenditure to which this section applies, the definition of “qualifying premises” in subsection (1) (a) of the principal section shall have effect as if the reference therein to 75 square metres were a reference to 90 square metres: | ||
Provided that a house (being a flat or maisonette of the kind mentioned in the definition) the total floor area of which is more than 75 square metres shall not be a qualifying premises by virtue of this subsection unless it contains three or more bedrooms; and, for the purposes of this proviso, “bedroom” means a room which is certified by the Minister for the Environment— | ||
(a) to have been designed and constructed for use as a bedroom, and | ||
(b) to be suitable for such use. | ||
(3) Where, by virtue of subsection (2) of the principal section, any expenditure to which this section applies falls to be taken into account for any chargeable period in computing, under section 81 (4) of the Income Tax Act, 1967 , a deficiency in respect of any rent from a qualifying premises, then, notwithstanding the said subsection (2), only so much of that expenditure as does not exceed the amount of that rent shall be so taken into account and subsection (4) shall apply as respects any subsequent chargeable period to any excess of that expenditure over the amount of that rent (hereafter in this section referred to as “excess expenditure”). | ||
(4) Where, as respects any chargeable period in respect of which subsection (3) applies, there is an amount of excess expenditure, that amount shall be treated, for the purposes of subsection (2) of the principal section and of subsection (3) of this section (including any further application of this subsection), as if it were expenditure to which this section applies which, by virtue of the said subsection (2), falls to be taken into account for the next succeeding chargeable period in computing under section 81 (4) of the Income Tax Act, 1967 , a surplus or deficiency in respect of any rent from the qualifying premises. | ||
(5) Where, under the proviso to subsection (2) of the principal section, there falls to be made any reduction of expenditure falling to be treated as having been incurred in the qualifying period but in part on or before the 31st day of March, 1984, and in part after that date, the amount of that reduction shall be apportioned to that part of the qualifying period falling on or before that date and to that part of the qualifying period falling after that date according to the respective amounts of the expenditure treated as having been incurred in those parts. | ||
(6) Where, under subsection (6) or (7) of the principal section, or under either of those subsections as applied by section 24 of the Finance Act, 1981 , a person is treated as having incurred expenditure (hereafter in this subsection referred to as “the first-mentioned expenditure”) in the qualifying period on the construction of a house and an amount of expenditure actually incurred on the construction or conversion of that house falls to be treated as having been incurred in the qualifying period but in part on or before the 31st day of March, 1984, and in part after that date, the first-mentioned expenditure shall be treated as having been incurred in part on or before that date and in part after that date in the same proportions as the amount of expenditure actually incurred in the qualifying period fell to be so treated. | ||
(7) (a) In this section— | ||
“chargeable period” means— | ||
(i) in a case where any rent is chargeable to income tax, a year of assessment, and | ||
(ii) in a case where any rent is chargeable to corporation tax, an accounting period; | ||
“expenditure to which this section applies” means expenditure incurred in the period (hereafter in this definition referred to as “the first-mentioned period”) commencing on the 1st day of April, 1984, and ending on the 31st day of March, 1987, on the construction of a qualifying premises; and for the purposes of determining whether and to what extent such expenditure was so incurred in the first-mentioned period, subsection (1) (b) of the principal section shall have effect as if the references in subparagraph (i) thereof to the qualifying period were references to the first-mentioned period and with any other necessary modifications. | ||
(b) This section and section 30 shall be construed together with the principal section. |