Finance (No. 2) Act 1992

Exemption etc.

9(1)This paragraph applies if—

(a)an individual is a qualifying individual for a year of assessment,

(b)the amount of the sums mentioned in paragraph 2(1) above does not exceed the individual’s limit for the year, and

(c)no election that this paragraph shall not apply to the individual for the year has effect under paragraph 10 below.

(2)Where this paragraph applies the following shall be treated as nil for the purposes of the Tax Acts—

(a)the profits or gains of any period which as regards the year is a basis period for a source mentioned in paragraph 2(1) above;

(b)the losses of any such period.

(3)Where this paragraph applies no allowance or balancing charge shall be made for the year to or on the individual under section 24 of the [1990 c. 1.] Capital Allowances Act 1990 in respect of any machinery or plant provided for the purposes of any trade from which any of the sums mentioned in paragraph 2(1) above are derived.

(4)In a case where—

(a)apart from this sub-paragraph the preceding provisions of this paragraph would apply, and

(b)the amount of the sums mentioned in paragraph 2(1) above together with the amount of any relevant balancing charges would exceed the individual’s limit for the year,

the preceding provisions of this paragraph shall not apply.

(5)For the purposes of sub-paragraph (4) above a relevant balancing charge is a balancing charge which (apart from this paragraph) would be made for the year on the individual under section 24 of the [1990 c. 1.] Capital Allowances Act 1990 in respect of any machinery or plant provided for the purposes of any trade from which any of the sums mentioned in paragraph 2(1) above are derived.

(6)In ascertaining the amount of sums for the purposes of this paragraph no deduction shall be made in respect of expenses or any other matter.

10(1)An individual may elect that paragraph 9 above shall not apply to him for a year of assessment, and (unless withdrawn) the election shall have effect accordingly.

(2)An election under this paragraph shall have effect only for the year of assessment for which it is made.

(3)An individual who has made an election under this paragraph for a year of assessment may give a notice to withdraw the election, and if he does so the election shall not have effect for that year.

(4)An election, or notice of withdrawal, under this paragraph—

(a)must be made or given before the end of the period of one year beginning with the end of the year of assessment concerned or such longer period as the Board may in any particular case allow, and

(b)must be made or given in writing to the inspector.

(5)In a case where—

(a)an election is made, or a notice to withdraw an election is given, under this paragraph, and

(b)in order to give effect to the election or its withdrawal it is necessary to make an adjustment by way of an assessment,

the assessment shall not be out of time if it is made before the end of the period of one year beginning with the day when the election was made or (as the case may be) the notice to withdraw was given.