HC Deb 10 May 2000 vol 349 cc958-9

5.—(1) This paragraph applies in relation to property if—

  1. (a) the property is plant or machinery to which a relevant transfer relates,
  2. (b) the property would be treated for the purposes of the Capital Allowances Acts as disposed of by the transferor to the transferee on the transfer taking effect, and
  3. (c) the relevant order or scheme contains provision for the transferee to be taken for the purposes of those Acts to have incurred capital expenditure of an amount specified in or determined in accordance with the order or scheme on the provision of the property.

(2) For the purposes of those Acts—

  1. (a) the transferee is to be taken to have incurred capital expenditure of that amount on the provision of the property for the purposes for which it is used by the transferee on and after the taking effect of the transfer,
  2. (b) the property is to be taken as belonging to the transferee in consequence of the transferee having incurred that expenditure, and
  3. (c) in the case of a fixture, the expenditure which falls to be treated as incurred by the transferee is to be taken for the purposes of section 54 of the 1990 Act to be incurred by the giving of a consideration consisting in a capital sum of that amount.

(3) In sub-paragraph (1)(c) "the relevant order or scheme" means—

  1. (a) in the case of a transfer by virtue of section 192, an order made by the Secretary of State by statutory instrument, or
  2. (b) in the case of a transfer by virtue of a scheme under paragraph 1 of Schedule 14 or paragraph 31 of Schedule 16, the scheme concerned.

(4) A provision mentioned in sub-paragraph (1)(c) for the determination of an amount may include provision—

  1. (a) for a determination to be made by the Secretary of State in a manner described in the order or scheme,
  2. (b) for a determination to be made by reference to factors so described or to the opinion of a person so described, and
  3. (c) for a determination to be capable of being modified (on one or more occasions) in a manner and in circumstances so described.

(5) The Treasury's consent is required for the making or modification of a determination under a provision mentioned in subparagraph (1)(c).

(6) The transferee's consent is also required for such a modification after the relevant transfer takes effect.

(7) If there is a determination or a modification of a determination under a provision mentioned in sub-paragraph (1)(c) all necessary adjustments—

  1. (a) must be made by making assessments or by repayment or discharge of tax, and
  2. (b) must be made despite any limitation on the time within which assessments may be made.