This section concerns expenditure on sea walls as part of a rental business.
Where a person incurs expenditure in the making of any sea wall or other embankment necessary for the preservation or protection of the premises agaisnt the encroachment or overflowing of the sea or any tidal river, that person will get a tax deduction when computing his rental income equal to one twenty-first of the expenditure in the year in which it has been incurred, and in each of the subsequent 20 years.
Subsection (2) provides for the benefit of this deduction to be transferred to the subsequent owners of the interest in the property that was held by the person originally incurring the expenditure.
Subsection (2A) makes sure subsection (2) works where the tranferor is subject to income, rather than corporation, tax.
Subsection (3) makes it clear who the subsequent owner of the interest in the property is where that interest is a lease that comes to an end.
Subsection (4) provides that, where necessary, the deduction is time apportioned between accounting periods falling in periods of account to which the deduction applies, excluding any last accounting periods if the deduction is no longer relevant for that period.
Subsection (5) provides that the section does not apply to any expenditure for which a capital allowance is due.