Finance Act, 2002

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Capital allowances for certain hospitals.

32.—Section 268 of the Principal Act is amended—

(a) by inserting the following after subsection (1) (as amended by this Act):

“(1A) 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)(j) is held by—

(a) a company,

(b) the trustees of a trust,

(c) an individual who is involved in the operation or management of the qualifying hospital concerned either as an employee or director or in any other capacity, or

(d) a property developer (within the meaning of section 372A), in the case where either such property developer or a person connected with such property developer incurred the capital expenditure on the construction of that building or structure,

then, notwithstanding that subsection, that building or structure shall not 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 referred to in paragraph (a), (b), (c) or (d), as the case may be, in a sole capacity or jointly or in partnership with another person or persons.”,

and

(b) in the definition of “qualifying hospital” in subsection (2A) (inserted by the Finance Act, 2001 )—

(i) by deleting paragraph (b),

(ii) by substituting “70 in-patient beds” for “100 in-patient beds” in paragraph (d),

(iii) by substituting “gives, during the period of 7 years referred to in section 272(4)(h), an annual certificate in writing” for “gives a certificate in writing” in paragraph (h), and

(iv) by substituting the following for “but does not include any part of the hospital which consists of consultants' rooms or offices.”:

“and—

(I) includes any part of the hospital which consists of rooms used exclusively for the assessment or treatment of patients, but

(II) does not include any part of the hospital which consists of consultants' rooms or offices.”.