Section 71 — Finance Act 2008: Thermal insulation of buildings

Thermal insulation of buildings 71 1 Section 28 of CAA 2001 (thermal insulation of industrial buildings) is amended as follows.

2 In subsection (1)—

a for “consisting of a trade” substitute “ other than an ordinary property business or an overseas property business ” , b for “an industrial” substitute “ a ” , and c for “the trade” substitute “ the qualifying activity ” .

3 In subsection (2), for “an industrial” substitute “ a ” .

4 After that subsection insert— 2A Subsection (2) is subject to section 35 (expenditure on plant or machinery for use in dwelling-house not qualifying expenditure). 2B This section does not apply to expenditure within subsection (2) if a deduction for that expenditure is allowable—

a under section 31ZA of ICTA, or b under section 312 of ITTOIA 2005, (deductions for expenditure on energy-saving items). 2C For the purposes of subsection (2B), whether such a deduction is allowable is to be determined without regard to subsection (1)(e) of the section in question.

5 Omit subsection (3).

6 In the heading, omit “ industrial ”.

7 In section 23(2) of CAA 2001 (expenditure unaffected by sections 21 and 22), in the entry for section 28, omit “industrial”.

8 The amendments made by this section have effect—

a for corporation tax purposes, in relation to expenditure incurred on or after 1 April 2008, and b for income tax purposes, in relation to expenditure incurred on or after 6 April 2008.