CA37720 - IBA: Enterprise zones: Realisation of capital value: Conditions for legislation to apply

All of the following conditions must be satisfied for the realisation of capital value legislation to apply:

1. The qualifying expenditure must have qualified for enterprise zone allowances.
2. Capital value is paid which is attributable to a subordinate interest to which the relevant interest is or will be subject.
3. The payment is made not more than 7 years after the making of the agreement under which the qualifying expenditure is incurred.

If the agreement for the qualifying expenditure was conditional the time limit in (c) above is 7 years from the time that the agreement became unconditional.

The legislation applies to payments of capital value made after the 7-year time limit has expired where those payments are made under an agreement made before expiry of the 7-year time limit.

It also applies to payments made after expiry of the 7-year time limit under a conditional agreement to pay capital value made before expiry of the 7-year time limit which becomes unconditional before that date.

In some cases the 7-year time limit is abolished altogether CA37760.