Capital Allowances Act 2001 section 39 (Schedule 3)

Fixture on which industrial buildings allowance has been made

Schedule 3 paragraph 39 provides a transitional rule that disapplies the restriction in section 186 (which limits qualifying expenditure on fixtures where an industrial buildings allowance has been made) for transactions occurring before 24th July 1996.

• Section 186 normally restricts the amount of qualifying expenditure a person can claim on a fixture where an industrial buildings allowance has previously been made on the same asset.
• This transitional provision disapplies that restriction where the relevant event occurred before 24th July 1996.
• The relevant event is the time referred to in section 186(1)(c)(ii), which is the point at which the person in question acquired the qualifying interest in the industrial building or structure.
• In practice, this means that pre-24 July 1996 acquisitions are not subject to the cap that section 186 would otherwise impose on plant and machinery allowances for fixtures within industrial buildings.