80
CAP. 112]
Inland Revenue
[1989 Ed.
(4) Notwithstanding anything in subsection (3), in no case shall the amount on which a balancing charge is made on a person exceed the aggregate of the following amounts, that is to say-
(a) the amount of the initial allowance, if any, made to him in respect of the expenditure in question;
(b) the amount of the annual allowances, if any, made to him in respect of the expenditure in question.
35A. Special provisions on termination of leasehold interest
Where, on the termination of a leasehold interest-
(a) a lessee of any building or structure remains in possession thereof with the consent of the lessor without a new lease being granted to him, the leasehold interest shall be deemed for the purposes of this Part to continue so long as he so remains in possession;
(b) a new lease is granted to the lessee either by way of regrant or in pursuance of an option available to him under the terms of the first lease, this Part shall have effect as if the second lease were a continuation of the first lease.
(Added 2 of 1971 s. 27)
35B. Buildings and structures bought unused
Where capital expenditure is incurred on the construction of a building or structure and, before that building or structure is used, the relevant interest therein is sold-
(a) the expenditure actually incurred on the construction thereof shall be left out of account for the purposes of this Part and any initial allowance made under section 34 shall be disallowed and such additional assessments as may be necessary consequent thereon shall be made; but
(b) (i) in a case where the person who sells that interest incurred that expenditure and made that sale in the course of a trade which consists, in whole or part, in the construction or development of buildings or structures for the purpose of sale, the person who buys that interest shall be deemed for those purposes to have incurred, on the date when the purchase price becomes payable, capital expenditure on the construction thereof equal to the net price paid by him for that interest; and
(ii) in any other case, the person who buys that interest shall be deemed for those purposes to have incurred, on the date...
80
CAP. 112]
Inland Revenue
[1989 Ed.
(4) Notwithstanding anything in subsection (3), in no case shall the amount on which a balancing charge is made on a person exceed the aggregate of the following amounts, that is to say-
(a) the amount of the initial allowance, if any, made to him in respect
of the expenditure in question;
(b) the amount of the annual allowances, if any, made to him in
respect of the expenditure in question.
35A. Special provisions on termination
of leasehold interest
Where, on the termination of a leasehold interest-
(a) a lessee of any building or structure remains in possession thereof with the consent of the lessor without a new lease being granted to him, the leasehold interest shall be deemed for the purposes of this part to continue so long as he so remains in possession; (b) a new lease is granted to the lessee either by way of regrant or in pursuance of an option available to him under the terms of the first lease, this Part shall have effect as if the second lease were a continuation of the first lease.
(Added 2 of 1971 s. 27)
35B. Buildings and structures bought unused
Where capital expenditure is incurred on the construction of a building or structure and, before that building or structure is used, the relevant interest therein is sold-
(a) the expenditure actually incurred on the construction thereof shall be left out of account for the purposes of this Part and any initial allowance made under section 34 shall be disallowed and such additional assessments as may be necessary consequent thereon shall be made; but
(b) (i) in a case where the person who sells that interest incurred that expenditure and made that sale in the course of a trade which consists, in whole or part, in the construction or development of buildings or structures for the purpose of sale, the person who buys that interest shall be deemed for those purposes to have incurred, on the date when the purchase price becomes payable, capital expenditure on the construction thereof equal to the net price paid by him for that interest; and
(ii) in any other case, the person who buys that interest shall be deemed for those purposes to have incurred, on the
i
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