372V Capital allowances in relation to construction or refurbishment of certain park and ride facilities.

(1) (a) ^[7]>Subject to^{<[7] [2]>}subsections (2) to (4)^<[2][7]>[2]>subsections (2) to (4A)^<[2]<[7][7]>Subject to subsections (2) to (4A) and (as inserted by the Finance Act 2006) section 270(4), 270(5), 270(6) and 316(2B)^<[7], the provisions of the Tax Acts relating to the making of allowances or charges in respect of capital expenditure incurred on the construction or refurbishment of an industrial building or structure shall, notwithstanding anything to the contrary in those provisions, apply as if a qualifying park and ride facility were, at all times at which it is a qualifying park and ride facility, a building or structure in respect of which an allowance is to be made for the purposes of income tax or corporation tax, as the case may be, under Chapter 1 of Part 9 by reason of its use for a purpose specified in section 268(1)(a).

(b) An allowance shall be given by virtue of this subsection in respect of any capital expenditure incurred on the construction or refurbishment of a qualifying park and ride facility only in so far as that expenditure is incurred in the qualifying period.

(2) In a case where capital expenditure is incurred in the qualifying period on the refurbishment of a qualifying park and ride facility, subsection (1) shall apply only if the total amount of the capital expenditure so incurred is not less than an amount equal to 10 per cent of the market value of the qualifying park and ride facility immediately before that expenditure is incurred.

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(2A) This section shall not apply in respect of expenditure incurred on the construction or refurbishment of a qualifying park and ride facility—

(a) where a property developer is entitled to the relevant interest, within the meaning of section 269, in relation to that expenditure, and

(b) either the person referred to in paragraph (a) or a person connected (within the meaning of section 10) with that person incurred the expenditure on the construction or refurbishment of the qualifying park and ride facility concerned.

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(3) For the purposes of the application, by subsection (1), of sections 271 and 273 in relation to capital expenditure incurred in the qualifying period on the construction or refurbishment of a qualifying park and ride facility—

(a) section 271 shall apply—

(i) as if in subsection (1) of that section the definition of “industrial development agency” were deleted,

(ii) as if in subsection (2)(a)(i) of that section “to which subsection (3) applies” were deleted,

(iii) as if subsection (3) of that section were deleted,

(iv) as if the following subsection were substituted for subsection (4) of that section:

“(4) An industrial building allowance shall be of an amount equal to 50 per cent of the capital expenditure mentioned in subsection (2).”,

and

(v) as if in subsection (5) of that section “to which subsection (3)(c) applies” were deleted,

and

(b) section 273 shall apply—

(i) as if in subsection (1) of that section, the definition of “industrial development agency” were deleted, and

(ii) as if subsections (2)(b) and (3) to (7) of that section were deleted.

(4) Notwithstanding section 274(1), no balancing charge shall be made in relation to a qualifying park and ride facility by reason of any of the events specified in that section which occurs—

(a) more than 13 years after the qualifying park and ride facility was first used ^[3]>or, where subsection (4A) applies, first used as a qualifying park and ride facility^<[3], or

(b) in a case where section 276 applies, more than 13 years after the capital expenditure on refurbishment of the ^[4]>park and ride facility^<[4][4]>qualifying park and ride facility^<[4] was incurred.

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(4A) Notwithstanding subsections (1), (3)(a) and (4), where it is shown in respect of a building or structure which is to be a qualifying park and ride facility that the relevant local authority is unable to give the certificate in writing referred to in the definition of “qualifying park and ride facility” in section 372U(1) due to a delay in the provision of a train service to serve the building or structure, then, in relation to capital expenditure incurred in the qualifying period on the construction or refurbishment of that building or structure—

(a) section 271 shall apply—

(i) as if in the definition of “appropriate chargeable period” in subsection (1) of that section “the chargeable period in which the building or structure becomes an industrial building or structure” were substituted for “the chargeable period related to the expenditure”, and

(ii) as if in subsection (6) of that section “if, within 5 years of the building or structure coming to be used, it is not an industrial building or structure” were substituted for “if the building or structure, when it comes to be used, is not an industrial building or structure”,

(b) section 272 shall apply as if in subsection (4)(a)(ii) of that section “beginning with the time when the building or structure was first used as an industrial building or structure” were substituted for “beginning with the time when the building or structure was first used”,

(c) section 274 shall apply—

(i) as if in subsection (1)(b)(i)(II) of that section “after the building or structure was first used as an industrial building or structure” were substituted for “after the building or structure was first used”, and

(ii) as if in subsection (5)(a) of that section “when the building or structure was first used as an industrial building or structure” were substituted for “when the building or structure was first used for any purpose”,

(d) section 277 shall apply—

(i) as if in subsection (2) of that section “when the building or structure is first used as an industrial building or structure” were substituted for “when the building or structure is first used”, and

(ii) as if in subsection (4)(a) of that section “when the building or structure was first used as an industrial building or structure” were substituted for “when the building or structure was first used for any purpose”,

(e) section 278 shall apply as if in subsection (2) of that section “before the building or structure is first used as an industrial building or structure” were substituted for “before the building or structure is first used for any purpose”, and

(f) section 279 shall apply as if in subsections (2) and (3) of that section “before the building or structure is used as an industrial building or structure or within the period of one year after it commences to be so used” were substituted for “before the building or structure is used or within the period of one year after it commences to be used” (in each place where it occurs in those subsections).

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(5) For the purposes only of determining, in relation to a claim for an allowance by virtue of subsection (1), whether and to what extent capital expenditure incurred on the construction or refurbishment of a qualifying park and ride facility is incurred or not incurred in the qualifying period, only such an amount of that capital expenditure as is properly attributable to work on the construction or refurbishment of the qualifying park and ride facility actually carried out during the qualifying period shall (notwithstanding any other provision of the Tax Acts as to the time when any capital expenditure is or is to be treated as incurred) be treated as having been incurred in that period.

(6) Where an allowance is given under this section in respect of capital expenditure incurred on the construction or refurbishment of a qualifying park and ride facility, no allowance shall be given in respect of that expenditure by virtue of any other provision of the Tax Acts.