Section 33B — Finance Act 2008: Meaning of “replacement” in section 33A

Meaning of “replacement” in section 33A 33B 1 Expenditure to which this section applies is to be treated for the purposes of section 33A as expenditure on the replacement of an integral feature.

2 This section applies to expenditure incurred by a person on an integral feature if the amount of the expenditure is more than 50% of the cost of replacing the integral feature at the time the expenditure is incurred.

3 Subsection (4) applies where—

a a person incurs expenditure (“initial expenditure”) on an integral feature which is not more than 50% of the cost of replacing the integral feature at the time it is incurred, but b in the period of 12 months beginning with the initial expenditure being incurred the person incurs further expenditure on the integral feature.

4 If the aggregate of—

a the amount of the initial expenditure, and b the amount (or the aggregate of the amounts) of the further expenditure, is more than 50% of the cost of replacing the integral feature at the time the initial expenditure was incurred, this section applies to the initial expenditure and the further expenditure.

5 Where section 33A applies because of subsection (4), all such assessments and adjustments of assessments are to be made as are necessary to give effect to that section.