Finance Act 2011

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Amendment of section 372AP (relief for lessors) of Principal Act.

24.— (1) Section 372AP of the Principal Act is amended—

(a) in subsection (1) by inserting the following after the definition of “relevant cost”:

“ ‘relevant day’ has the same meaning as it does in Chapter 4A of Part 12;”,

(b) in subsection (1) in paragraph (b)(ii) of the definition of “relevant period” by substituting “after the date of such completion,” for “after the date of such completion;”,

(c) in subsection (1) in the definition of “relevant period” by inserting the following after paragraph (b)(ii):

“but in relation to a premises which is not a qualifying premises or a special qualifying premises on a date that is 6 months after the relevant day solely by virtue of not being let on that day under a qualifying lease, the relevant period shall begin on that day and the provisions of this Chapter shall apply accordingly;”,

(d) in subsection (2) by substituting “Subject to subsections (3), (4), (5), (8A), (8B) and (8C),” for “Subject to subsections (3), (4) and (5),”,

(e) in subsection (3) by inserting the following after paragraph (b):

“(c) For the purposes of paragraph (a) and notwithstanding paragraph (b), no deduction shall be given under subsection (2)(a) for any chargeable period which begins after the chargeable period in which the relevant period ends.”,

(f) in subsection (8) by inserting the following after paragraph (b):

“(c) Notwithstanding any other provision of this section, paragraph (a) shall not apply where the event mentioned in subsection (7)(b) occurs on or after the relevant day.”,

and

(g) by inserting the following after subsection (8):

“(8A) Where the relevant period in relation to any qualifying premises or any special qualifying premises ends in any chargeable period ending—

(a) before the relevant day, or

(b) at any other time,

then section 384 shall not apply to the amount of any excess (within the meaning of section 384(2)) in respect of eligible expenditure on that premises which is carried forward from that chargeable period—

(i) where paragraph (a) applies, to the chargeable period in which the relevant day occurs and each subsequent chargeable period, and

(ii) where paragraph (b) applies, to the next subsequent chargeable period and each subsequent chargeable period.

(8B) (a) Where, by virtue of subsection (2), any eligible expenditure to which this section applies falls to be taken into account for any chargeable period in computing, under section 97(1), a deficiency in respect of any rent from a qualifying premises or a special qualifying premises, then, notwithstanding subsection (2), only so much of that eligible expenditure as does not exceed the amount of that rent shall be so taken into account and paragraph (c) is to apply as respects each subsequent chargeable period to any excess of that eligible expenditure over the amount of that rent (referred to in this subsection as ‘excess expenditure’).

(b) Subject to paragraph (c), section 384 shall cease to apply to the amount of any excess (within the meaning of section 384(2)) in respect of eligible expenditure on any qualifying premises or any special qualifying premises which is carried forward from an earlier chargeable period to the chargeable period in which the relevant day occurs.

(c) For the purposes of paragraph (a), but subject to subsection (8A), the amount of any excess (within the meaning of section 384(2)) in respect of eligible expenditure on any qualifying premises or any special qualifying premises which is carried forward from an earlier chargeable period to the chargeable period in which the relevant day occurs, shall be treated as eligible expenditure to which this section applies and which falls to be taken into account for the chargeable period in which the relevant day occurs in computing, under section 97(1), a deficiency in respect of any rent from that qualifying premises or that special qualifying premises.

(d) Section 384 shall cease to apply for any chargeable period beginning on or after the relevant day to the amount of any excess (within the meaning of section 384(2)) in respect of eligible expenditure on any qualifying premises or any special qualifying premises to which this subsection applies.

(e) Where, as respects each chargeable period to which paragraph (a) applies, there is an amount of excess expenditure, that amount shall be treated, for the purposes of subsection (2) and paragraph (a) (including any further application of this subsection), as if it were eligible expenditure to which this section applies which, by virtue of subsection (2), falls to be taken into account for the next succeeding chargeable period in computing, under section 97(1), a surplus or deficiency in respect of any rent from the qualifying premises or the special qualifying premises.

(8C) For the purposes of subsections (8A) and (8B), section 485C(3)(ab) and paragraph 4 of Schedule 25C shall apply in determining the amount of any relief, to which this Chapter applies, to be carried forward from any chargeable period to each subsequent chargeable period.

(8D) Notwithstanding any other provisions of this section, and as respects the chargeable period in which the relevant day occurs, any eligible expenditure in relation to a qualifying premises or a special qualifying premises shall not be taken into account in computing a deficiency in respect of any rent other than rent from that qualifying premises or special qualifying premises, where that rent arises in the period beginning on the relevant day and ending on the last day of the chargeable period.”.

(2) Subsection (1) applies as on and from the relevant day (within the meaning of section 409F(3) (inserted by section 23 ) of the Taxes Consolidation Act 1997 ).