Taxes Consolidation Act 1997 section 320

Other interpretation (Part 9)

Section 320 defines key terms and sets out rules for interpreting references used throughout Part 9, which deals with capital allowances and balancing charges for industrial buildings, machinery, plant and dredging expenditure.

• Income includes any amount on which a balancing charge arises, enabling carried-forward allowances to be set against such charges in later periods.
• References to buildings, structures, machinery or plant include parts of those assets, except where Part 9 refers to the whole of a building or structure; shares in machinery or plant are treated in the same way as parts.
• A sale is treated as taking place at completion or when possession is given, whichever is earlier, and a lease includes any agreement for a lease where the term has begun and any tenancy, but not a mortgage.
• References to the setting up or discontinuance of a trade include deemed events under the Income Tax Acts, and an allowance is treated as made even where there is insufficient income to absorb it in the relevant year.