Section 269 Interest charged to capital.
United Kingdom
Where—
a company incurs expenditure on the construction of any building, structure or works, being expenditure allowable as a deduction under F1section 32 of the Capital Gains Tax Act 1979 in computing a gain accruing to the company on the disposal of the building, structure or work, or of any asset comprising it, and
that expenditure was defrayed out of borrowed money, . . . F2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ,
F3the sums so allowable under the said section 32 shall, subject to subsection (1A) below, include the amount of any interest on that borrowed money which is referable to a period or part of a period ending on or before the disposal.
Subsection (1) above has effect subject to section 33 of the said Act of 1979 and does not apply to interest which is a charge on income.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F4
Annotations
Textual amendments
- F1
Words substituted by Capital Gains Tax Act 1979 (c. 14, SIF 63:2), s. 157(2), Sch. 7 paras. 2 and 9 for 1979-80 et seq.
- F2
S. 268A(1)(c) and word immediately preceding it repealed by Finance Act 1981 (c. 35), ss. 38(3), 139, Sch. 19 Pt. VI in relation to interest paid in any accounting period ending on or after April 1st 1981.
- F3
Words substituted by Finance Act 1981 (c. 35), s. 38(3) in relation to interest paid in any accounting period ending on or after April 1st 1981.
- F4
S. 269(2) repealed, as respects disposals after July 22nd 1970, by Finance Act 1971 (c. 68), ss. 55, 69(7), Sch. 14 Pt. III, subject to s. 55 and Sch. 9 of the said Act of 1971.
Notes on the whole Act
Textual amendments
- F1
Act repealed (in relation to Tax for the year 1992/93 and subsequent years as mentioned in s. 289 of the repealing Act) by Taxation of Chargeable Gains Act 1992 (c. 12), s. 290(3), Sch. 11 para. 24(1), Sch.12 (with savings in ss. 201(3), 290, Sch. 11 paras. 22, 26(2), 27), subject to applications, powers and amendments in the following enactments: Social Security Contributions and Benefits Act 1992 (c. 4), s. 16(1)(3), Sch. 2; Social Security (Consequential Provisions) Act 1992 (c. 6), s. 5, Sch. 3 Pt. II para. 15; Taxation of Chargeable Gains Act 1992 (c. 12), ss. 1(2), 209(3); Finance (No. 2) Act 1992, ss. 24, 49(2)(3)(a)(b)(4)(9), 77, Sch. 6 paras.4, 9, Sch. 17 paras. 6(3)(6), 7; S.I. 1992/58, arts. 9, 11(3),33, Sch. 2 para.1, S.I. 1992/1725, art. 107, Sch. 8 para.2; S.I. 1995/171, reg. 4(2)(a); S.I. 1995/1916, reg. 4; 1994 c. 9, s. 258, Sch. 26 Pt. V
Notes on Part XI
Modifications
- C1
See Income and Corporation Taxes Act 1988 (c. 1, SIF:63:1), ss. 114–116— special rules for partnerships involving companies.
Notes on Chapter I
Modifications
- C1
See Income and Corporation Taxes Act 1988 (c. 1, SIF 63:1), ss. 21(2), 59— Pt. XI Ch. 1 to have effect to the exclusion of those sections (persons chargeable under Schs. A and D).