Finance Act 2005

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Amendment of section 659 (farming: allowances for capital expenditure on the construction of farm buildings, etc., for control of pollution) of Principal Act.

30.—Section 659 of the Principal Act is amended—

(a) in subsection (1)(c), by substituting “1 January 2009” for “1 January 2007” (inserted by the Finance Act 2004 ),

(b) in subsection (2)(b)—

(i) by substituting “6 April 2000,” for “6 April 2000, or” in subparagraph (i),

(ii) by substituting “6 April 2000 but before 1 January 2005, or” for “6 April 2000,” in subparagraph (ii), and

(iii) by inserting the following after subparagraph (ii):

“(iii) 3 years beginning with the chargeable period related to the capital expenditure, where that expenditure is incurred on or after 1 January 2005.”,

(c) in subsection (3A) by substituting “on or after 6 April 2000 but before 1 January 2005 shall,” for “on or after 6 April 2000 shall,”,

(d) by inserting the following after subsection (3A):

“(3AA) The farm pollution control allowances to be made in accordance with subsection (2) during the writing-down period referred to in subsection (2)(b)(iii) in respect of capital expenditure incurred in a chargeable period, shall where that expenditure is incurred on or after 1 January 2005, and subject to subsection (3BA), be an amount equal to 331/3 per cent of that expenditure incurred for each of the 3 years of the writing-down period.”,

(e) in subsection (3B)(a)—

(i) by substituting “In this subsection and subsection (3BA)” for “In this subsection”,

(ii) by substituting “residual amount.” for “residual amount;” in the definition of “specified amount”, and

(iii) by deleting “ ‘specified return date for the chargeable period’ has the same meaning as in section 950.”,

(f) by inserting the following after subsection (3B):

“(3BA) (a) Notwithstanding subsection (3AA), where farm pollution control allowances are to be made to a person in accordance with that subsection during the writing-down period referred to in subsection (2)(b)(iii), such person may elect to have those allowances made in accordance with this subsection and, where such person so elects, the allowances shall be made in accordance with this subsection only.

(b) Where paragraph (a) applies to a person, the farm pollution control allowance to be made to such person during the writing-down period referred to in subsection (2)(b)(iii) shall be an amount equal to—

(i) 331/3 per cent of the specified amount for each of the 3 years of the writing-down period, and

(ii) subject to paragraph (c), the whole or any part of the residual amount, as is specified by the person to whom the allowances are to be made, in any year of the writing-down period.

(c) The allowances to be made in accordance with paragraph (b) for any year of the writing-down period, shall not in the aggregate exceed the residual amount.”,

(g) by substituting the following for subsection (3C)(a):

“(3C) (a) An election by a person to whom this section applies in relation to the farm pollution control allowances claimed in subsection (3B) or (3BA), as the case may be, shall be made in writing on or before the specified return date for the chargeable period (within the meaning of section 950) in which the expenditure is incurred and shall be included in the annual statement required to be delivered under the Income Tax Acts of the profits or gains from farming as set out in subsection (5).”,

and

(h) in subsection (11) by substituting “Chapter 1 or Chapter 2” for “Chapter 1”.