Taxes Consolidation Act 1997 section 380V

Improvement

Section 380V restricts the capital allowance available where expenditure on a new installation within a dangerous substances area includes an element of improvement beyond mere relocation.

• A new installation qualifies as an improved installation where it has greater capacity, or improved efficiency or productivity, beyond what constitutes normal modernisation or upgrading of the old installation it replaces.
• Where expenditure on such an improved installation includes expenditure on new machinery, plant, or new industrial buildings or structures, the amount qualifying for relief is reduced by the element representing improvement.
• The improvement element is the proportion of the expenditure on the new machinery, plant, or building that relates to providing increased capacity or improved efficiency or productivity.
• The inspector determines that proportion on a just and reasonable basis; on appeal, the Appeal Commissioners make that determination.