Commentary

B2.415 Closedown and rationalisation of the trade—certified schemes for rationalising industry

Business tax
Business tax | Commentary

B2.415 Closedown and rationalisation of the trade—certified schemes for rationalising industry

Business tax | Commentary

B2.415 Closedown and rationalisation of the trade—certified schemes for rationalising industry

The Secretary of State has power to certify a scheme as a scheme for rationalising industry if he is satisfied:

  1.  

    •     that the primary object of the scheme is the elimination of redundant works, machinery or plant from use in a UK industry

  2.  

    •     that the scheme is in the national interest and in the interest of the industry as a whole, and

  3.  

    •     that persons in the industry, who are substantially representative of the industry, are liable to pay contributions in furtherance of the primary object of the scheme by agreement between them and the body of persons carrying out the scheme.

For this purpose a UK industry includes shipowning, and references to works or machinery or plant include references to ships1.

The Secretary of State can cancel any certificate if he is no longer satisfied the conditions above are met2, and can at any time require those carrying out a certified scheme to produce any books or documents relating to the scheme, and if the requirement is not complied with, may cancel the certificate3.

Notwithstanding anything in CTA 2009, s 53 (for corporation tax) or ITTOIA 2005, s 33 (for income tax) which deny a deduction for capital expenditure, if a person pays a contribution in furtherance of a certified scheme, and pays it wholly and exclusively for the purposes of a trade in respect of which he is chargeable4 or , the contribution, in so far as it is

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