Citation, commencement, effect and interpretation

1. —(1) These Regulations may be cited as the Energy-Saving Items (Deductions for Expenditure etc.) Regulations 2004, shall come into force on 3rd November 2004 and shall have effect in respect of expenditure incurred on or after 6th April 2004.

(2) For the purposes of these Regulations, “a building” means a structure which is a dwelling-house, or which contains one or more dwelling-houses.

Deductions for expenditure on energy-saving items in buildings

2. The maximum amount of a deduction which may be claimed under section 31A of the Income and Corporation Taxes Act 1988(“a section 31A deduction”) in computing for the purposes of income tax the profits of Schedule A business in any tax year, is £1500 per building, irrespective of—

(a) the number of dwelling-houses contained in that building; and

(b) the number of claimants making a section 31A deduction claim, or the number of persons eligible to claim a section 31A deduction, in respect of that building.

Conditions attaching to a section 31A deduction

3. —(1) Where a section 31A deduction is claimed, the following conditions apply.

(2) Where the building is, or the dwelling-house or dwelling-houses contained in the building, to which the claim relates, is or are—

(a) jointly owned or owned in common by the claimant and other persons, or

(b) subject to differing estates or interests, or

(c) separately owned by the claimant and other persons,

a just and reasonable apportionment of the section 31A deduction shall be allowed in respect of that part of the expenditure which is incurred by the claimant or claimants for the purposes of a Schedule A business, and, where the maximum amount is claimed, that amount shall be apportioned in the same way.

(3) If a claimant has received a contribution from any other person towards the expenditure incurred, the amount of that contribution shall be deducted from the amount which the claimant may claim in respect of a section 31A deduction, whether or not that other person is entitled to make a separate claim under that section.

Appeals against section 31A deduction awards

4.Section 42 of the Income and Corporation Taxes Act 1988 shall apply for the purposes of an appeal against the determination of a claim for a section 31A deduction where it involves making a determination or apportionment in accordance with section 31A(13)(c) or (d) of that Act.