Clause 14

by deleting subsection (1) and substituting the following subsections:“(1) Where any of the events referred to in subsection (1A) occurs while a building or structure is an industrial building or structure or after it has ceased to be one and —

any capital expenditure has been incurred on the construction of the building or structure before 1st January 2006; or

either —

any capital expenditure has been incurred on the construction of the building or structure on or after 1st January 2006; or

a sale and purchase agreement for the building or structure was entered into on or after that date,then an allowance or charge, to be known as a “balancing allowance” or a “balancing charge” shall, in the circumstances mentioned in this section, be made to or, as the case may be, on the person entitled to the relevant interest immediately before that event occurs for the year of assessment in the basis period for which that event occurs.(1A) The events referred to in subsection (1) are —

the relevant interest in the building or structure is sold;

that interest, being a leasehold interest, comes to an end otherwise than on the person entitled thereto acquiring the interest which is reversionary thereon;

the building or structure is demolished or destroyed or, without being demolished or destroyed, ceases altogether to be used.”;

by deleting the word “No” in subsection (2) and substituting the words “In the case referred to in subsection (1)(a), no”; and

by deleting paragraph (a) of subsection (3) and substituting the following paragraph:“(a)on the sale of the relevant interest in the building or structure unless the person proves to the satisfaction of the Comptroller that the value of the building or structure to the person is less than —

in the case referred to in subsection (1)(a), the amount of the capital expenditure incurred on the construction of the building or structure reduced by the amount of any initial and annual allowances made (including an amount of 3% of the capital expenditure for each year in which no initial or annual allowance was made); or

in the case referred to in subsection (1)(b), the amount of the capital expenditure incurred by him on the construction or purchase of the building or structure (as the case may be) reduced by the amount of any initial and annual allowances made (including an amount of 3% of the capital expenditure for each year in which no initial or annual allowance was made); and”.