SCHEDULES

SCHEDULE 26Special rate expenditure and the special rate pool

Part 1Amendments of CAA 2001

Consequential amendments

3

In section 54(5) (the different kinds of pools), for “section 101 (long life assets);” substitute “ section 104C (special rate expenditure); ”.

4

In section 56(2) (amount of allowances and charges), for paragraph (a) substitute—

a

section 104D (special rate expenditure: 10%), and

5

In section 65(1) (final chargeable period), for paragraph (b) substitute—

b

a special rate pool,

6

In section 66 (list of provisions about disposal values), for the entry relating to section 104 substitute—

section 104E

special rate expenditure: avoidance cases

7

In column 1 of the table in section 84 (cases in which short-life asset treatment is ruled out), for item 4 substitute—

4

The expenditure is special rate expenditure (see Chapter 10A).

8

Omit section 92 (application of Chapter 10 to part of expenditure).

9

For section 101 (long-life asset pool) substitute—

101Allocation of long-life asset expenditure to pool

Chapter 10A (special rate expenditure and the special rate pool) provides for long-life asset expenditure to be allocated to the special rate pool.

10

For section 102 (6% writing-down allowance in respect of long-life asset expenditure) substitute—

102Writing-down allowance in respect of long-life asset expenditure

Chapter 10A (special rate expenditure and the special rate pool) provides for the writing-down allowance to which a person is entitled in respect of long-life asset expenditure.

11

Omit section 104 (disposal value of long-life assets).

12

In section 266(7) (certain provisions disapplied where election made under section 266)—

a

for “104” substitute “ 104E ”, and

b

for “of long-life assets” substitute “ in connection with special rate expenditure ”.

13

In Part 2 of Schedule 1 (index of defined expressions), insert at the appropriate place—

special rate expenditure (in Part 2)

section 104A