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Rovisions Supplementary To Sections 3 And 4

Volume 888: debated on Wednesday 19 March 1975

The text on this page has been created from Hansard archive content, it may contain typographical errors.

Amendments made: No. 209, in page 43, line 33, leave out from ' consideration ' to end of line 35 and insert:

'while in use in that connection or not more than two years after its use in that connection permanent ceases'.

No. 210, in line 38, leave out from beginning to end of line 16 on page 44 and insert—

'(c) the person to whom the disposal is made is not a person connected with a participator ; and
(d) the amount or value of the consideration received or receivable for the disposal is not less than the price which the asset might reasonably have been expected to fetch if sold in the open market at the time of the disposal,

sub-paragraphs (2) to (4) below shall have effect.

(2) If the disposal occurs without the asset permanently ceasing to be used in connection with the field, its use in that connection shall for the purposes of section 4 of this Act and the following provisions of this paragraph be deemed to have permanently ceased at the time of the disposal.

(3) If the disposal takes place not later than the end of the claim period in which the use of the asset in connection with the field permanently ceases, the proportion of the expenditure allowable under section 4 of this Act for the relevant period (that is to say the period which, in relation to that claim period, is the relevant period for the purposes of subsection (7) of that section) or, if the claim period in question is the first relevant claim period (as defined in that section), the proportion of the expenditure so allowable for that claim period shall be computed under that section subject to the provisions of subparagraph (3B) below.

(3A) If the disposal takes place after the end of the claim period in which the use of the asset in connection with the field permanently ceases, then, as regards the claim period in which the disposal takes place—

  • (a) subsection (7) of section 4 of this Act shall have effect in relation to the asset as if its use in that connection had permanently ceased in that claim period (but so that for the purposes of subsections (5) and (6) of that section as applied by the said subsection (7) the asset shall not be treated as having been used in that connection at any time when it was not so used); and
  • (b) the proportion of the expenditure allowable under that section for the relevant period (that is to say the period which, in relation to that claim period is the relevant period for the purposes of the said subsection (7) shall be computed under that section subject to the purposes of sub-paragraph (3B) below.
  • (3B) For the purposes of the computation mentioned in sub-paragraph (3) or (3A) above, as the case may be—

  • (a) the amount of the expenditure incurred in acquiring, bringing into existence, or enhancing the value of the asset which would otherwise fall to be taken into account shall be treated as reduced by the amount or value of the consideration received or receivable for the disposal (or, if equal to or smaller than the amount or value of that consideration, as reduced to nil); and
  • (b) the asset's useful life shall be treated as having ended at the time of the disposal or, if the asset permanently ceased to be used in connection with the field before that time and was neither used not available for use by anyone in the interval between its permanently ceasing to be so used and the time of the disposal, at the time when it permanently ceased to be so used'.
  • No. 211, in page 44, line 19, leave out from ' thereof ' to above ' in line 20 and insert

    'would be allowable under section 4 of this Act apart from sub-paragraph (3B)(a)'.

    No. 212, in line 22, leave out is' and insert would be '.

    No. 213, in page 45, line 29, leave out ' paragraphs 4(1) and' and insert paragraph '.— [ Mr. Dell.]