Section 269 | Interest charged to capital.

(1)Where—^F1

(a)a company incurs expenditure on the construction of any building, structure or works, being expenditure allowable as a deduction under section 32 of the Capital Gains Tax Act 1979 in computing a gain accruing to the company on the disposal of the building, structure or work, or of any asset comprising it, and^F2

(b)that expenditure was defrayed out of borrowed money, . . .^F3

(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ,^F3

the sums so allowable under the said section 32 shall, subject to subsection (1A) below, include the amount of any interest on that borrowed money which is referable to a period or part of a period ending on or before the disposal.

(1A)Subsection (1) above has effect subject to section 33 of the said Act of 1979 and does not apply to interest which is a charge on income.^F1

(2)Repealed^F4