Capital Allowances Act 2001 section 107

Contributions not made by public bodies and not eligible for tax relief

Section 107 of Schedule 3 modifies the application of Section 536 for contributions made before 27th July 1989, removing one of the conditions that would normally allow a contributor's expenditure to qualify as an exception to the general rule excluding contributed expenditure from capital allowances.

• This paragraph is a transitional provision affecting how Section 536 applied to older contributions made before 27th July 1989.
• Section 536 normally provides an exception allowing capital allowances where a contribution is not made by a public body and is not eligible for tax relief in the contributor's hands.
• For pre-27th July 1989 contributions, the condition in subsection (3)(b) of Section 536 is removed, narrowing the scope of the exception that was available at that time.
• The practical effect is that fewer contributions made before that date could benefit from the exception under Section 536, as one of the qualifying conditions is disregarded.