Finance Act, 1978
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Allowances in respect of certain contributions to capital expenditure of local authorities. |
26.—(1) In this section— | |
“approved scheme” means a scheme undertaken by a local authority with the approval of the Minister for the Environment which has as its object or among its objects the treatment of trade effluents; | ||
“trade effluents” means liquid or other matter discharged into public sewers from premises occupied for the purposes of a trade. | ||
(2) Where a person, for the purposes of a trade carried on or to be carried on by him, contributes a capital sum to expenditure by a local authority on the provision of an asset to be used for the purposes of an approved scheme, in so far as the scheme relates to the treatment of trade effluents, then such allowances, if any, shall be made to the person under the provisions of Part XIII, Part XV, or section 264 (inserted by the Corporation Tax Act, 1976 ) of the Income Tax Act, 1967 , as would have been made to him if the contribution had been expenditure on the provision, for the purposes of that trade, of a similar asset and the latter asset had continued at all material times to be in use for the purposes of the trade. | ||
(3) The following provisions shall have effect in relation to a transfer of a trade or part of a trade for the purposes of which a contribution referred to in subsection (2) was made: | ||
(a) where the transfer is of the whole trade, allowances which, if the transfer had not taken place, would have fallen to be made to the transferor under the said Part XIII or the said section 264 for chargeable periods ending after the date of the transfer shall be made to the transferee, and shall not be made to the transferor, | ||
(b) where the transfer is of part only of the trade, paragraph (a) shall have effect with respect to so much of the allowance as is properly referable to the part of the trade transferred. |