85 Deduction for certain industrial premises

Summary

A person who owns and occupies an industrial building or structure (within the meaning of section 268) for the purposes of a trade is entitled to a deduction in computing the profits/gains of the trade equivalent to five-twelfths of the rateable valuation of the premises. The deduction is only available where the capital expenditure on construction of the building or structure was incurred before 30 September, 1956.

Details

Definition

(1) “premises” is an industrial building or structure within the meaning of section 268 which is not a building or structure to which section 272 applies. Accordingly, the section only applies to such premises where the expenditure was incurred before 30 September 1956.

Deduction

(2) A deduction equivalent to five-twelfths of the rateable valuation of the premises is available in the computation of the profits/gains chargeable to tax under Case I of Schedule D. The premises must be owned by the person carrying on the trade and occupied by that person for the purposes of the trade.

(3) A similar deduction is available in computing the profits/gains chargeable to tax by virtue Case I (b) of Schedule D (that is, profits from land, mines, quarries, etc – see section 18(2)).

Apportionment

(4)(a) The rateable valuation is apportioned where the premises consists of units, some of which may qualify for the deduction and some which may not.

(4)(b) Any apportionment is made by the inspector to the best of his/her knowledge and judgement.

(4)(c) Any apportionment of the rateable valuation made by the inspector may be amended on the appeal of that assessment by the Appeal Commissioners. A certificate of the Commissioner of Valuation as to the amount of the rateable valuation of any property attributable to any part of the property is admissible as evidence of the value of that part.

Relevant Date: Finance Act 2021