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Capital Allowances Act 2001

Changes to legislation:

Capital Allowances Act 2001 is up to date with all changes known to be in force on or before 21 November 2024. There are changes that may be brought into force at a future date. Help about Changes to Legislation

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  1. Introductory Text

  2. Part 1 Introduction

    1. Chapter 1 Capital allowances: general

      1. 1. Capital allowances

      2. 1A.Capital allowances and charges: cash basis

      3. 2. General means of giving effect to capital allowances

      4. 3.Claims for capital allowances

      5. 4.Capital expenditure

      6. 5. When capital expenditure is incurred

      7. 6. Meaning of “chargeable period”

    2. CHAPTER 1A Trades attracting Northern Ireland rate of corporation tax

      1. 6A.“NIRE company” and “SME (Northern Ireland employer) company”

      2. 6B.“Northern Ireland firm” etc

      3. 6C.“NI rate activity”

      4. 6D. NI rate activity treated as separate trade

      5. 6E.Giving effect to allowances and charges: NI rate activity cases

    3. Chapter 2 Exclusion of double relief

      1. 7. No double allowances

      2. 8. No double relief through pooling under Part 2 (plant and machinery allowances)

      3. 9. Interaction between fixtures claims and other claims

      4. 10. Interpretation

  3. Part 2 Plant and machinery allowances

    1. Chapter 1 Introduction

      1. 11.General conditions as to availability of plant and machinery allowances

      2. 12.Expenditure incurred before qualifying activity carried on

      3. 13.Use for qualifying activity of plant or machinery provided for other purposes

      4. 13A.Use for other purposes of plant or machinery previously used for long funding leasing

      5. 13B.Use for other purposes of plant or machinery: property businesses

      6. 14.Use for qualifying activity of plant or machinery which is a gift

    2. Chapter 2 Qualifying activities

      1. 15.Qualifying activities

      2. 16.Ordinary UK property businesses

      3. 17.UK furnished holiday lettings businesses

      4. 17A.Ordinary overseas property business

      5. 17B.EEA furnished holiday lettings businesses

      6. 18.Managing the investments of a company with investment business

      7. 19.Special leasing of plant or machinery

      8. 20.Employments and offices

    3. Chapter 3 Qualifying expenditure

      1. Buildings, structures and land

        1. 21.Buildings

        2. 22.Structures, assets and works

        3. 23.Expenditure unaffected by sections 21 and 22

        4. 24.Interests in land

        5. 25.Building alterations connected with installation of plant or machinery

      2. Demolition costs

        1. 26.Demolition costs

      3. Expenditure on thermal insulation and personal security

        1. 27.Application of Part to thermal insulation and personal security

        2. 28.Thermal insulation of ... buildings

        3. 29.Fire safety

        4. 30.Safety at designated sports grounds

        5. 31.Safety at regulated stands at sports grounds

        6. 32.Safety at other sports grounds

        7. 33.Personal security

      4. Expenditure on integral features

        1. 33A.Expenditure on provision or replacement of integral features

        2. 33B.Meaning of “replacement” in section 33A

      5. Exclusion of certain types of expenditure

        1. 34.Expenditure by MPs and others on accommodation

        2. 34A.Expenditure on plant or machinery for long funding leasing not qualifying expenditure

        3. 35.Expenditure on plant or machinery for use in dwelling-house not qualifying expenditure in certain cases

        4. 36.Restriction on qualifying expenditure in case of employment or office

        5. 37.Exclusion where sums payable in respect of depreciation

        6. 38.Production animals etc.

        7. 38ZA.Vehicles for which deductions allowed at fixed rate under Part 2 of ITTOIA 2005

    4. Chapter 3A AIA qualifying expenditure

      1. 38A.AIA qualifying expenditure

      2. 38B.General exclusions applying to section 38A

    5. Chapter 4 First-year qualifying expenditure

      1. General

        1. 39.First-year allowances available for certain types of qualifying expenditure only

      2. Types of expenditure which may qualify for first-year allowances

        1. 40.Expenditure incurred for Northern Ireland purposes by small or medium-sized enterprises

        2. 41.Miscellaneous exclusions from section 40 (expenditure for Northern Ireland purposes etc.)

        3. 42.Exclusion of plant or machinery partly for use outside Northern Ireland

        4. 43.Effect of plant or machinery subsequently being primarily for use outside Northern Ireland

        5. 44.Expenditure incurred by small or medium-sized enterprises

        6. 45.ICT expenditure incurred by small enterprises

        7. 45A.Expenditure on energy-saving plant or machinery

        8. 45AA.Section 45A exclusion: feed-in tariffs and renewable heat incentives

        9. 45B.Certification of energy-saving plant and machinery

        10. 45C.Energy-saving components of plant or machinery

        11. 45D.Expenditure on cars with low carbon dioxide emissions

        12. 45DA.Expenditure on zero-emission goods vehicles

        13. 45DB.Exclusions from allowances under section 45DA

        14. 45E.Expenditure on plant or machinery for gas refuelling station

        15. 45EA.Expenditure on plant or machinery for electric vehicle charging point

        16. 45F.Expenditure on plant and machinery for use wholly in a ring fence trade

        17. 45G.Plant or machinery used for less than five years in a ring fence trade

        18. 45H.Expenditure on environmentally beneficial plant or machinery

        19. 45I.Certification of environmentally beneficial plant and machinery

        20. 45J.Environmentally beneficial components of plant or machinery

        21. 45K.Expenditure on plant and machinery for use in designated assisted areas

        22. 45L.Exclusion of plant or machinery partly for use outside designated assisted areas

        23. 45M.Exclusions from allowances under section 45K

        24. 45N.Effect of plant or machinery subsequently being primarily for use outside designated assisted areas

        25. 45O.Expenditure on plant and machinery for use in special tax sites

        26. 45P.Power to amend conditions

        27. 45Q.Exclusion of plant or machinery partly for use outside special tax sites

        28. 45R.Effect of failing to comply with ongoing requirements

        29. 45S.Expenditure on plant or machinery in other cases

        30. 45T.Exclusion of expenditure incurred under disqualifying arrangements

        31. 46.General exclusions ...

      3. Expenditure of small or medium-sized enterprises

        1. 47.Expenditure of small or medium-sized enterprises: companies

        2. 48.Expenditure of small or medium-sized enterprises: businesses

        3. 49.Whether company is a member of a large or medium-sized group

      4. Supplementary

        1. 50.Time when expenditure is incurred

        2. 51.Disclosure of information between UK tax authorities

    6. Chapter 5 Allowances and charges

      1. Annual investment allowance

        1. 51A.Entitlement to annual investment allowance

        2. 51B.First restriction: companies

        3. 51C.Second restriction: groups of companies

        4. 51D.Third restriction: groups of companies under common control

        5. 51E.Fourth restriction: other companies under common control

        6. 51F.Companies and groups: meaning of “control”

        7. 51G.Companies and groups: meaning of “related”

        8. 51H.Fifth restriction: qualifying activities under common control

        9. 51I.Qualifying activities: meaning of control

        10. 51J.Qualifying activity: meaning of “related”

        11. 51JA.Sixth restriction: allocation where profits chargeable at NI rate

        12. 51K.Operation of annual investment allowance where restrictions apply

        13. 51L.Special provision for short chargeable periods

        14. 51M.Special provision for long chargeable periods

        15. 51N.Special provision for long chargeable periods: supplementary

      2. First-year allowances

        1. 52.First-year allowances

      3. Prevention of double relief

        1. 52A.Prevention of double relief

      4. Pooling

        1. 53.Pooling of qualifying expenditure

        2. 54.The different kinds of pools

      5. Writing-down and balancing allowances and balancing charges

        1. 55.Determination of entitlement or liability

        2. 56.Amount of allowances and charges

        3. 56A.Writing-down allowances for small pools

      6. Available qualifying expenditure

        1. 57.Available qualifying expenditure

        2. 58.Initial allocation of qualifying expenditure to pools

        3. 59.Unrelieved qualifying expenditure

      7. Special balancing charge in cases of full expensing etc

        1. 59A.Disposal of assets where first-year allowance made under section 45S for expenditure which is not special rate expenditure

        2. 59B.Disposal of assets where first-year allowance made under section 45S for expenditure which is special rate expenditure

        3. 59C.Sections 59A and 59B: tax avoidance arrangements

      8. Disposal events and disposal values: general

        1. 60.Meaning of “disposal receipt” and “disposal event”

        2. 61.Disposal events and disposal values

        3. 62.General limit on amount of disposal value

        4. 62A.Cases in which disposal value is transition value

        5. 63.Cases in which disposal value is nil

        6. 64.Case in which no disposal value need be brought into account

        7. 64A.Leased assets: arrangements reducing disposal value of asset

      9. The final chargeable period

        1. 65.The final chargeable period

      10. List of provisions outside this Chapter about disposal values

        1. 66.List of provisions outside this Chapter about disposal values

      11. Application of Chapter to person leaving cash basis

        1. 66A.Persons leaving cash basis

      12. Effect of changes in Northern Ireland status of SME company or SME partnership

        1. 66B.SME company entering NI corporation tax regime

        2. 66C.SME partnership entering NI corporation tax regime

        3. 66D.SME company leaving NI corporation tax regime

        4. 66E.SME partnership leaving NI corporation tax regime

    7. Chapter 6 Hire-purchase etc. and plant or machinery provided by lessee

      1. Hire-purchase and similar contracts

        1. 67.Plant or machinery treated as owned by person entitled to benefit of contract, etc.

        2. 68.Disposal value on cessation of notional ownership

        3. 69.Hire-purchase etc. and fixtures

      2. Plant or machinery provided by lessee

        1. 70.Plant or machinery provided by lessee

      3. Lessees under long funding leases

        1. 70A.Entitlement to capital allowances

        2. 70B.Long funding operating lease: amount of capital expenditure

        3. 70C.Long funding finance lease: amount of capital expenditure

        4. 70D.Long funding finance lease: additional expenditure: allowances for lessee

        5. 70DA.Transfer and long funding leaseback: restrictions on lessee's allowances

        6. 70E.Disposal events and disposal values

    8. Chapter 6A Interpretation of provisions about long funding leases

      1. Introductory

        1. 70F.Introductory

      2. Meaning of “long funding lease” etc

        1. 70G.“Long funding lease”

        2. 70H.Lessee: requirement for tax return treating lease as long funding lease

        3. 70I.“Short lease”

        4. 70J.“Funding lease”

      3. Meaning of “plant or machinery lease”

        1. 70K.“Plant or machinery lease”

        2. 70L.Plant or machinery leased with other assets: separate derived leases

        3. 70M.Derived leases of plant or machinery: term and rentals

      4. The tests for being a funding lease

        1. 70N.The finance lease test

        2. 70O.The lease payments test

        3. 70P.The useful economic life test

      5. Leases excluded by right of lessor etc to claim capital allowances

        1. 70Q.Leases excluded by right of lessor etc to claim capital allowances

      6. Excluded leases of background plant or machinery for a building

        1. 70R.Excluded leases of background plant or machinery for a building

        2. 70S.The disqualifications

        3. 70T.Orders relating to background plant or machinery for a building

      7. Exclusion for certain plant or machinery leased with land

        1. 70U.Plant or machinery leased with land: low percentage value

      8. Avoidance

        1. 70V.Tax avoidance involving international leasing

      9. Transfers, assignments, novations, leaseback, variations etc

        1. 70W.Transfers, assignments etc by lessor

        2. 70X.Transfers, assignments etc by lessee

        3. 70Y.Sale and leaseback, lease and leaseback etc: lessors

        4. 70YA.Change in accountancy classification of long funding lease

        5. 70YB.Long funding operating lease: extension of term of lease

        6. 70YC.Extension of term of lease that is not a long funding lease

        7. 70YD.Increase in proportion of residual amount guaranteed: review of status

      10. Interpretation

        1. 70YE.“Minimum lease payments”

        2. 70YF.The “term” of a lease

        3. 70YG.“Termination amount”

        4. 70YH.“Termination value”

        5. 70YI.General definitions

        6. 70YJ.Power to vary the meaning of certain expressions

    9. Chapter 7 Computer software

      1. 71.Software and rights to software

      2. 72.Disposal values

      3. 73.Limit on disposal values

    10. Chapter 8 Cars, etc.

      1. Cars above the cost threshold

        1. 74.Single asset pool

        2. 75.General limit on amount of writing-down allowance

        3. 76.Limit where part of expenditure met by another person

        4. 77.Car used partly for purposes other than those of qualifying activity

        5. 78.Effect of partial depreciation subsidy

        6. 79.Cases where Chapter 17 (anti-avoidance) applies

      2. Vehicles provided for purposes of employment or office

        1. 80.Vehicles provided for purposes of employment or office

      3. Interpretation

        1. 81.Extended meaning of “car”

        2. 82.Qualifying hire cars

    11. Chapter 9 Short-life assets

      1. 83.Meaning of “short-life asset”

      2. 84.Cases in which short-life asset treatment is ruled out

      3. 85.Election for short-life asset treatment: procedure

      4. 86.Short-life asset pool

      5. 87.Short-life assets provided for leasing

      6. 88.Sales at under-value

      7. 89.Disposal to connected person

    12. Chapter 10 Long-life assets

      1. Long-life asset expenditure

        1. 90.Long-life asset expenditure

        2. 91.Meaning of “long-life asset”

        3. 92.Application of Chapter to part of expenditure

      2. Expenditure excluded from being long-life asset expenditure

        1. 93.Fixtures etc.

        2. 94.Ships

        3. 95.Railway assets

        4. 96.Cars

        5. 97.Expenditure within the relevant monetary limit: general

        6. 98.Expenditure to which the monetary limits apply

        7. 99.The monetary limit

        8. 100.Exceeding the monetary limit

      3. Rules applying to long-life asset expenditure

        1. 101.Allocation of long-life asset expenditure to pool

        2. 102.Writing-down allowance in respect of long-life asset expenditure

      4. Anti-avoidance provisions

        1. 103.Later claims

        2. 104.Disposal value of long-life assets

    13. Chapter 10A Special rate expenditure

      1. Special rate expenditure

        1. 104A.Special rate expenditure

        2. 104AA.Meaning of “main rate car”

        3. 104B.Application of Chapter to part of expenditure

      2. Rules applying to special rate expenditure

        1. 104C.Special rate pool

        2. 104D.Writing-down allowances at 6% or 10%

        3. 104E.Disposal value of special rate assets

        4. 104F.Special rate cars: discontinued activity continued by relevant company

        5. 104G.Disposal events in respect of cushion gas

    14. Chapter 11 Overseas leasing

      1. Basic terms

        1. 105.“Leasing”, “overseas leasing” etc.

        2. 106.The designated period

      2. Certain expenditure to be pooled

        1. 107.The overseas leasing pool

        2. 108.Effect of disposal to connected person on overseas leasing pool

      3. Allowances reduced or, in certain cases, prohibited

        1. 109.Writing-down allowances at 10%

        2. 110.Cases where allowances are prohibited

      4. Recovery of excess allowances

        1. 111.Excess allowances: standard recovery mechanism

        2. 112.Excess allowances: connected persons

        3. 113.Excess allowances: special provision for ships

      5. Recovery of allowances given in cases where prohibition applies

        1. 114.Prohibited allowances: standard recovery mechanism

        2. 115.Prohibited allowances: connected persons

      6. Application of Chapter in relation to joint lessees

        1. 116.Mitigation of regime

        2. 117.Recovery of allowances in case of joint lessees

      7. Duties to supply information

        1. 118.Certificate relating to protected leasing

        2. 119.Notice of change of use of plant or machinery

        3. 120.Notice and joint lessees

      8. Qualifying purposes

        1. 121.Meaning of “short-term leasing”

        2. 122.Short-term leasing by buyer, lessee, etc.

        3. 123.Ships and aircraft

        4. 124.Transport containers

        5. 125.Other qualifying purposes

      9. Minor definitions

        1. 126.Minor definitions

    15. Chapter 12 Ships

      1. Pooling and postponement of allowances

        1. 127.Single ship pool

        2. 128.Expenditure which is not to be allocated to single ship pool

        3. 129.Election to use the appropriate non-ship pool

        4. 130.Notice postponing first-year or writing-down allowance

        5. 131.Effect of postponement

        6. 132.Disposal events and single ship pool

        7. 133.Ship not used

      2. Deferment of balancing charges

        1. 134.Deferment of balancing charges: introduction

        2. 135.Claim for deferment

        3. 136.Further conditions for deferment

        4. 137.Effect of deferment

        5. 138.Limit on amount deferred

        6. 139.Amount taken into account in respect of old ship

      3. Attribution of deferred amounts

        1. 140.Notice attributing deferred amounts to new expenditure

        2. 141.Deferred amounts attributed to earlier expenditure first

        3. 142.Variation of attribution

        4. 143.Effect of attribution

        5. 144.Amounts which cease to be attributable

        6. 145.Requirement to notify where no entitlement to defer amounts

      4. Expenditure on new shipping

        1. 146.Basic meaning of expenditure on new shipping

        2. 147.Exclusions: ship previously owned

        3. 148.Exclusions: object to secure deferment

        4. 149.Exclusions: later events

        5. 150.Exclusions where expenditure not incurred by shipowner

      5. Qualifying ships

        1. 151.Basic meaning of qualifying ship

        2. 152.Ships under 100 tons

        3. 153.Ships which are not qualifying ships

        4. 154.Further registration requirement

      6. Deferment of balancing charges: supplementary provisions

        1. 155.Change in the persons carrying on the qualifying activity

        2. 156.Connected persons

      7. Further provisions

        1. 157.Adjustment of assessments etc.

        2. 158.Members of same group

    16. Chapter 13 Provisions affecting mining and oil industries

      1. Expenditure connected with mineral extraction trades

        1. 159.Meaning of “mineral extraction trade” etc.

        2. 160.Expenditure treated as incurred for purposes of mineral extraction trade

        3. 161.Pre-trading expenditure on mineral exploration and access

      2. Expenditure connected with reuse etc. of offshore oil infrastructure

        1. 161A.Meaning of “offshore infrastructure”

        2. 161B.Meaning of “decommissioning expenditure”

        3. 161C.Expenditure related to reuse etc. qualifies for writing-down allowances

        4. 161D.Exceptions to section 161C(2)

      3. Provisions relating to ring fence trades

        1. 162.Ring fence trade a separate qualifying activity

        2. 163.Meaning of “general decommissioning expenditure”

        3. 163A.Expenditure in anticipation of approval of abandonment programme

        4. 164.General decommissioning expenditure incurred before cessation of ring fence trade

        5. 165.General decommissioning expenditure after ceasing ring fence trade

      4. Restrictions on allowances: anti-avoidance

        1. 165A.Decommissioning services supplied by connected person

        2. 165B.Restriction on allowance available

        3. 165C.Allowance in respect of certain services related to decommissioning

        4. 165D.Allowance where decommissioning undertaken for other participators in oil field

        5. 165E.Transaction to obtain tax advantage

      5. Transfers of interests in oil fields: anti-avoidance

        1. 166.Transfers of interests in oil fields: anti-avoidance

      6. Oil production sharing contracts

        1. 167.Oil production sharing contracts

        2. 168.Expenditure on plant or machinery incurred by contractor

        3. 169.Expenditure on plant or machinery incurred by participator

        4. 170.Participator’s expenditure attributable to plant or machinery

        5. 171.Disposal values on cessation of ownership

    17. Chapter 14 Fixtures

      1. Introduction

        1. 172.Scope of Chapter etc.

        2. 172A.Long funding leases etc: cases where this Chapter does not apply.

        3. 173.Meaning of “fixture” and “relevant land”

        4. 174.Meaning of “equipment lease” and “lease”

        5. 175.Meaning of “interest in land”, etc.

        6. 175A.Meaning of “energy services agreement”

      2. Persons who are treated as owners of fixtures

        1. 176.Person with interest in relevant land having fixture for purposes of qualifying activity

        2. 177.Equipment lessors

        3. 178.Equipment lessee has qualifying activity etc.

        4. 179.Equipment lessor has right to sever fixture that is not part of building

        5. 180.Equipment lease is part of affordable warmth programme

        6. 180A.Energy services providers

        7. 181.Purchaser of land giving consideration for fixture

        8. 182.Purchaser of land discharging obligations of equipment lessee

        9. 182A.Purchaser of land discharging obligations of client under energy services agreement

        10. 183.Incoming lessee where lessor entitled to allowances

        11. 184.Incoming lessee where lessor not entitled to allowances

      3. Restrictions on amount of qualifying expenditure

        1. 185.Fixture on which a plant and machinery allowance has been claimed

        2. 186.Fixture on which an industrial buildings allowance has been made

        3. 186A.Fixtures on which a business premises renovation allowance has been made

        4. 187.Fixture on which a research and development allowance has been made

        5. 187A.Effect of changes in ownership of a fixture

        6. 187B.Section 187A: supplementary provision

      4. Cessation of ownership of fixtures

        1. 188.Cessation of ownership when person ceases to have qualifying interest

        2. 189.Identifying the qualifying interest in special cases

        3. 190.Cessation of ownership of lessor where section 183 applies

        4. 191.Cessation of ownership on severance of fixture

        5. 192.Cessation of ownership of equipment lessor

        6. 192A.Cessation of ownership of energy services provider

      5. Acquisition of ownership of fixture when another ceases to own it

        1. 193.Acquisition of ownership by lessor or licensor on termination of lease or licence

        2. 194.Acquisition of ownership by assignee of equipment lessor

        3. 195.Acquisition of ownership by equipment lessee

        4. 195A.Acquisition of ownership by assignee of energy services provider

        5. 195B.Acquisition of ownership by client

      6. Disposal values

        1. 196.Disposal values in relation to fixtures: general

        2. 197.Disposal values in avoidance cases

      7. Election to fix apportionment

        1. 198.Election to apportion sale price on sale of qualifying interest

        2. 199.Election to apportion capital sum given by lessee on grant of lease

        3. 200.Elections under sections 198 and 199: supplementary

        4. 201.Elections under sections 198 and 199: procedure

      8. Further provisions

        1. 202.Interpretation

        2. 203.Amendment of returns etc.

        3. 204.Appeals etc.

    18. Chapter 15 Asset provided or used only partly for qualifying activity

      1. 205.Reduction of annual investment allowance and first-year allowances

      2. 206.Single asset pool etc.

      3. 207.Reduction of allowances and charges on expenditure in single asset pool

      4. 208.Effect of significant reduction in use for purposes of qualifying activity

      5. 208A.Cars: disposal value in avoidance cases

    19. Chapter 16 Partial depreciation subsidies

      1. 209.Meaning of “partial depreciation subsidy”

      2. 210.Reduction of annual investment allowance and first-year allowances

      3. 211.Single asset pool etc.

      4. 212.Reduction of allowances and charges on expenditure in single asset pool

    20. CHAPTER 16ZA Asset provided or used only partly for NI rate activity

      1. 212ZA.Apportionment of expenditure incurred partly for NI rate activity

      2. 212ZB.Single asset pool etc

      3. 212ZC.Allowances and charges on expenditure in single asset pool

      4. 212ZD.Effect of significant change in balance of use

      5. 212ZE.Application of Chapter to partnerships

      6. 212ZF.“Main rate activity”

    21. Chapter 16A Restrictions on allowance buying

      1. Introduction

        1. 212A.Scope of Chapter

        2. 212B.Where Chapter applies

      2. Qualifying change

        1. 212C.When there is qualifying change in relation to C

        2. 212D.Guide to sections explaining section 212C

        3. 212E.Principal companies

        4. 212F.When company is owned by consortium and consortium members

        5. 212G.Qualifying 75% subsidiaries

        6. 212H.Ownership proportion

        7. 212I.Relevant percentage share

      3. Relevant excess of allowances

        1. 212J.Relevant excess of allowances

        2. 212K.Relevant tax written-down value

        3. 212L.Balance sheet value

      4. Limiting conditions

        1. 212LA.Limiting conditions

      5. Unallowable purpose

        1. 212M.Unallowable purpose

      6. What happens when Chapter applies

        1. 212N.Old and new accounting periods

        2. 212O.When there is excess of allowances in pool: amount of excess

        3. 212P.Effect of excess of allowances on pools

        4. 212Q.When there are postponed capital allowances

        5. 212R.Apportionment of proceeds of disposal of relevant plant and machinery

        6. 212S.Transactions on relevant day

    22. CHAPTER 16B Cap on first-year allowances...

      1. 212T.Cap on first-year allowances: zero-emission goods vehicles

      2. 212U.Cap on first-year allowances: expenditure on plant and machinery for use in designated assisted areas

    23. Chapter 17 Other anti-avoidance

      1. Relevant transactions

        1. 213.Relevant transactions: sale, hire-purchase (etc.) and assignment

      2. Restrictions on allowances

        1. 214.Connected persons

        2. 215.Transactions to obtain tax advantages

        3. 216.Sale and leaseback, etc.

        4. 217.No annual investment allowance or first-year allowance for B’s expenditure

        5. 218.Restriction on B’s qualifying expenditure: section 214 or 216

        6. 218ZA.Restrictions on writing-down allowances: section 215

        7. 218ZB.Disposal values: section 215

        8. 218A.Further restriction on annual investment allowance

      3. Finance leases and certain operating leases

        1. 219.Meaning of “finance lease”

        2. 220.Allocation of expenditure to a chargeable period

      4. Sale and finance leasebacks

        1. 221.Meaning of “sale and finance leaseback”

        2. 222.Disposal value restricted

        3. 223.No first-year allowance for B’s expenditure

        4. 224.Restriction on B’s qualifying expenditure

        5. 225.B’s qualifying expenditure if lessor not bearing non-compliance risk

        6. 226.Qualifying expenditure limited in subsequent transactions

      5. Sale and leaseback: election for special treatment

        1. 227.Sale and leaseback: election for special treatment

        2. 228.Effect of election: relaxation of restriction on B’s qualifying expenditure, etc.

      6. Finance leaseback: parties' income and profits

        1. 228A.Application of sections 228B and 228C

        2. 228B.S's income or profits etc: deductions

        3. 228C.S's income or profits: termination of leaseback

        4. 228D.Lessor’s income or profits

        5. 228E.Lessor’s income or profits: termination of leaseback

        6. 228F.Lease and finance leaseback

        7. 228G.Leaseback not accounted for as finance lease in S's accounts

        8. 228H.Sections 228A to 228G: supplementary

        9. 228J.Plant or machinery subject to further operating lease

      7. Disposal of plant or machinery subject to lease where income retained

        1. 228K.Disposal of plant or machinery subject to lease where income retained

        2. 228L.Determining the net present value of the rentals for purposes of s.228K

        3. 228M.Other definitions for the purposes of s.228K

        4. 228MA.Restriction of qualifying expenditure

        5. 228MB.Calculation of present value

        6. 228MC.Rental rebate

      8. Miscellaneous and supplementary

        1. 229.Hire-purchase etc.

        2. 229A.Transfer followed by hire-purchase etc: restrictions on hirer's allowances

        3. 230.Exception for manufacturers and suppliers

        4. 231.Adjustments of assessments etc.

        5. 232.Meaning of connected person

        6. 233.Additional VAT liabilities and rebates

    24. Chapter 18 Additional VAT liabilities and rebates

      1. Introduction

        1. 234.Introduction

      2. Additional VAT liability

        1. 235.Additional VAT liability treated as qualifying expenditure

        2. 236.Additional VAT liability generates first-year allowance or annual investment allowance

        3. 237.Exceptions to section 236

      3. Additional VAT rebate

        1. 238.Additional VAT rebate generates disposal value

        2. 239.Limit on disposal value where additional VAT rebate

      4. Short-life assets: balancing allowance

        1. 240.Additional VAT liability

      5. Anti-avoidance

        1. 241.No annual investment allowance or first-year allowance in respect of additional VAT liability

        2. 242.Restriction on B’s qualifying expenditure: general

        3. 243.Restriction on B’s qualifying expenditure: sale and finance leaseback

        4. 244.B’s qualifying expenditure if lessor not bearing non-compliance risk

        5. 245.Effect of election under section 227 on additional VAT liability

        6. 246.Miscellaneous

    25. Chapter 19 Giving effect to allowances and charges

      1. Trades

        1. 247.Trades

      2. Property businesses

        1. 248.Ordinary UK property businesses

        2. 249.UK furnished holiday lettings businesses

        3. 250.Ordinary overseas property businesses

        4. 250A.EEA furnished holiday lettings businesses

      3. Activities analogous to trades

        1. 251.Professions and vocations

        2. 252.Mines, transport undertakings etc.

      4. Companies with investment business

        1. 253.Companies with investment business

      5. Long-term business

        1. 254.Introductory

        2. 255.Apportionment of allowances and charges

        3. 256.Different giving effect rules for BLAGAB

        4. 257.Supplementary

      6. Special leasing of plant or machinery

        1. 258.Special leasing: income tax

        2. 259.Special leasing: corporation tax (general)

        3. 260.Special leasing: corporation tax (excess allowance)

        4. 261.Special leasing: long-term business

        5. 261A.Special leasing: leasing partnerships

      7. Employments and offices

        1. 262.Employments and offices

      8. First-year tax credits

        1. 262A.First-year tax credits

    26. Chapter 20 Supplementary provisions

      1. Co-ownership authorised contractual schemes

        1. 262AA.Co-ownership schemes: carrying on qualifying activity

        2. 262AB.Co-ownership schemes: election

        3. 262AC.Co-ownership schemes: calculation of allowance after election

        4. 262AD.Co-ownership schemes: effect of election for participants

        5. 262AE.Co-ownership schemes: effect of election for purchasers

        6. 262AEA.Co-ownership schemes: withdrawal of election

        7. 262AF.Co-ownership schemes: definitions relating to schemes

      2. Partnerships and successions

        1. 263.Qualifying activities carried on in partnership

        2. 264.Partnership using property of a partner

        3. 265.Successions: general

        4. 266.Election where predecessor and successor are connected persons

        5. 267.Effect of election

        6. 267A.Restriction on effect of election

        7. 268.Successions by beneficiaries

      3. Cars etc

        1. 268A.Meaning of “car” and “motor cycle”

        2. 268B.Electrically-propelled vehicles

        3. 268C.Terms relating to emissions

        4. 268D.Hire cars for disabled persons

        5. 268E.Meaning of “assigns”

      4. Miscellaneous

        1. 269.Use of plant or machinery for business entertainment

        2. 270.Shares in plant or machinery

  4. PART 2A STRUCTURES AND BUILDINGS ALLOWANCES

    1. CHAPTER 1 INTRODUCTION

      1. 270AA.Structures and buildings allowances

      2. 270AB.Date on which construction begins

    2. CHAPTER 2 QUALIFYING EXPENDITURE

      1. Meaning of “qualifying expenditure”

        1. 270BA.Meaning of “qualifying expenditure”

      2. Qualifying expenditure incurred on construction

        1. 270BB.Capital expenditure incurred on construction

      3. Qualifying expenditure incurred on purchase

        1. 270BC.Sale of unused buildings or structures (other than by a developer)

        2. 270BD.Sale by a developer: unused buildings or structures

        3. 270BE.Sale by a developer: used buildings or structures

        4. 270BF.Meaning of references to carrying on trade as a developer

      4. Excluded expenditure

        1. 270BG.Acquisition or alteration of land etc

        2. 270BH.Market value rule

        3. 270BI.Provision of plant or machinery

      5. Expenditure treated as expenditure on construction

        1. 270BJ.Expenditure on renovation, conversion or incidental repairs

        2. 270BK.Preparation of sites

      6. Supplementary provision about expenditure

        1. 270BL.Apportionment of sums partly referable to non-qualifying assets

        2. 270BM.Evidence of the amount of expenditure

        3. 270BN.Expenditure incurred before qualifying activity carried on

    3. CHAPTER 2A special tax site qualifying expenditure

      1. 270BNA.Meaning of “special tax site qualifying expenditure”

      2. 270BNB.Apportionment

      3. 270BNC.Power to amend meaning of “special tax site qualifying expenditure” etc

    4. CHAPTER 3 QUALIFYING USE AND QUALIFYING ACTIVITIES

      1. Qualifying activities

        1. 270CA.Qualifying activities

        2. 270CB.Property businesses

        3. 270CC.Foreign permanent establishments

        4. 270CD.Companies with investment business

      2. Qualifying use

        1. 270CE.Qualifying use

        2. 270CF.Exclusion: residential use

        3. 270CG.Use for the purposes of a property business

    5. CHAPTER 4 THE RELEVANT INTEREST IN THE BUILDING OR STRUCTURE

      1. 270DA.General rule as to what is the relevant interest

      2. 270DB.Interest acquired on completion of construction

      3. 270DC.Effect of creation of subordinate interest

      4. 270DD.Leases granted for 35 years or more

      5. 270DE.Merger of leasehold interest

    6. CHAPTER 5 CALCULATING THE ALLOWANCE: SUPPLEMENTARY PROVISION

      1. 270EA.Proportionate adjustment in certain cases

      2. 270EB.Multiple uses

      3. 270EC.Research and development

    7. CHAPTER 6 HIGHWAY UNDERTAKINGS

      1. 270FA.Carrying on of highway undertakings

      2. 270FB.The relevant interest

      3. 270FC.Cases where highway concession is to be treated as extended

    8. CHAPTER 7 ADDITIONAL VAT LIABILITIES AND REBATES

      1. Introduction

        1. 270GA.Introduction

      2. Additional VAT liabilities

        1. 270GB.Additional VAT liabilities

      3. Additional VAT rebates

        1. 270GC.Additional VAT rebates

    9. CHAPTER 7A Adjustment for pre-April 2020 allowance

      1. 270GD.Adjustment for pre-April 2020 allowance

    10. CHAPTER 8 GIVING EFFECT TO ALLOWANCES

      1. Trades

        1. 270HA.Trades

      2. Property businesses

        1. 270HB.Ordinary UK property businesses and ordinary overseas property businesses

      3. Activities analogous to trades

        1. 270HC.Professions and vocations

        2. 270HD.Mines, transport undertakings etc

      4. Companies with investment business

        1. 270HE.Companies with investment business

      5. Long-term business

        1. 270HF.Application of sections 270HG and 270HH

        2. 270HG.Apportionment of allowances

        3. 270HH.Different giving effect rules for BLAGAB

        4. 270HI.Supplementary

    11. CHAPTER 9 SUPPLEMENTARY PROVISIONS

      1. Evidence of qualifying expenditure etc

        1. 270IA.Evidence of qualifying expenditure etc

      2. Anti-avoidance

        1. 270IB.Anti-avoidance: general

      3. Co-ownership authorised contractual schemes

        1. 270IC.Co-ownership schemes: carrying on qualifying activity

        2. 270ID.Co-ownership schemes: election

        3. 270IE.Co-ownership schemes: calculation of allowance after an election

        4. 270IF.Co-ownership schemes: definitions relating to schemes

      4. Leases

        1. 270IG.Treatment of leases

        2. 270IH.Meaning of “lease” etc

  5. Part 3 Industrial buildings allowances

    1. Chapter 1 Introduction

      1. 271. Industrial buildings allowances

      2. 272. Expenditure on the construction of a building

      3. 273. Preparation of sites for plant or machinery

    2. Chapter 2 Industrial buildings

      1. Buildings in use for the purposes of a qualifying trade

        1. 274. Trades and undertakings which are “qualifying trades”

        2. 275. Building used for welfare of workers

        3. 276. Parts of trades and undertakings

        4. 277. Exclusion of dwelling-houses, retail shops, showrooms, hotels and offices etc.

        5. 278. Building used by more than one licensee

      2. Qualifying hotels and sports pavilions

        1. 279. Qualifying hotels

        2. 280. Qualifying sports pavilions

      3. Commercial buildings (enterprise zones)

        1. 281. Commercial buildings (enterprise zones)

      4. Supplementary provisions

        1. 282. Buildings outside the United Kingdom

        2. 283. Non-industrial part of building disregarded

        3. 284. Roads on industrial estates etc.

        4. 285. Cessation of use and temporary disuse of building

    3. Chapter 3 The relevant interest in the building

      1. 286. General rule as to what is the relevant interest

      2. 287. Interest acquired on completion of construction

      3. 288. Effect of creation of subordinate interest

      4. 289. Merger of leasehold interest

      5. 290. Election to treat grant of lease exceeding 50 years as sale

      6. 291. Supplementary provisions with respect to elections

    4. Chapter 4 Qualifying expenditure

      1. Introduction

        1. 292. Meaning of “qualifying expenditure”

        2. 293. Meaning of references to carrying on a trade as a developer

      2. Qualifying expenditure

        1. 294. Capital expenditure on construction of a building

        2. 295. Purchase of unused building where developer not involved

        3. 296. Purchase of building which has been sold unused by developer

        4. 297. Purchase of used building from developer

      3. Qualifying enterprise zone expenditure

        1. 298. The time limit for qualifying enterprise zone expenditure

        2. 299. Application of section 294

        3. 300. Application of sections 295 and 296

        4. 301. Purchase of building within 2 years of first use

      4. Part of expenditure within time limit for qualifying enterprise zone expenditure

        1. 302. Qualifying enterprise zone expenditure where section 295 or 296 applies

        2. 303. Purchase of building within 2 years of first use

        3. 304. Application of section 303 where developer involved

    5. Chapter 5 Initial allowances

      1. 305. Initial allowances for qualifying enterprise zone expenditure

      2. 306. Amount of initial allowance and period for which allowance made

      3. 307. Building not industrial building when first used etc.

      4. 308. Grants affecting entitlement to initial allowances

    6. Chapter 6 Writing-down allowances

      1. 309. Entitlement to writing-down allowance

      2. 310. Basic rule for calculating amount of allowance

      3. 311. Calculation of allowance after sale of relevant interest

      4. 312. Allowance limited to residue of qualifying expenditure

      5. 313. Meaning of “the residue of qualifying expenditure”

      6. 313A.Calculation of allowance after sale of relevant interest: anti-avoidance

    7. Chapter 7 Balancing adjustments

      1. General

        1. 314. When balancing adjustments are made

        2. 315. Main balancing events

        3. 316. Proceeds from main balancing events

        4. 317. Balancing event where hotel not qualifying hotel for 2 years

      2. Calculation of balancing adjustments

        1. 318. Building an industrial building etc. throughout

        2. 319. Building not an industrial building etc. throughout

        3. 320. Overall limit on balancing charge

      3. Meaning of “the relevant period of ownership” etc.

        1. 321. The relevant period of ownership

        2. 322. Starting expenditure

        3. 323. Adjusted net cost

        4. 324. Net allowances

      4. Balancing allowances restricted where sale subject to subordinate interest

        1. 325. Balancing allowances restricted where sale subject to subordinate interest

        2. 326. Interpretation of section 325

      5. Qualifying enterprise zone expenditure: effect of realising capital value

        1. 327. Capital value provisions: application of provisions

        2. 328. Balancing adjustment on realisation of capital value

        3. 329. Capital value that is attributable to subordinate interest

        4. 330. Exception for payments more than 7 years after agreement

        5. 331. Capital value provisions: interpretation

    8. Chapter 8 Writing off qualifying expenditure

      1. 332. Introduction

      2. 333. Writing off initial allowances

      3. 334. Writing off writing-down allowances

      4. 335. Writing off research and development allowances

      5. 336. Writing off expenditure when building not an industrial building

      6. 337. Writing off or increase of expenditure where balancing adjustment made

      7. 338. Writing off capital value which has been realised

      8. 339. Crown or other person not within the charge to tax entitled to the relevant interest

      9. 340. Treatment of demolition costs

    9. Chapter 9 Highway undertakings

      1. 341. Carrying on of highway undertakings

      2. 342. The relevant interest

      3. 343. Balancing adjustment on ending of concession

      4. 344. Cases where highway concession is to be treated as extended

    10. Chapter 10 Additional VAT liabilities and rebates

      1. Introduction

        1. 345. Introduction

      2. Additional VAT liabilities

        1. 346. Additional VAT liabilities and initial allowances

        2. 347. Additional VAT liabilities and writing-down allowances

        3. 348. Additional VAT liabilities and writing off initial allowances

      3. Additional VAT rebates

        1. 349. Additional VAT rebates and writing-down allowances

        2. 350. Additional VAT rebates and balancing adjustments

        3. 351. Additional VAT rebates and writing off qualifying expenditure

    11. Chapter 11 Giving effect to allowances and charges

      1. 352. Trades

      2. 353. Lessors and licensors

      3. 354. Buildings temporarily out of use

      4. 355. Buildings for miners etc.: carry-back of balancing allowances

    12. Chapter 12 Supplementary provisions

      1. 356. Apportionment of sums partly referable to non-qualifying assets

      2. 357. Arrangements having an artificial effect on pricing

      3. 358. Requisitioned land

      4. 359. Provisions applying on termination of lease

      5. 360. Meaning of “lease” etc.

  6. Part 3A Business Premises Renovation Allowances

    1. Chapter 1 INTRODUCTION

      1. 360A.Business premises renovation allowances

    2. Chapter 2 QUALIFYING EXPENDITURE

      1. 360B.Meaning of “qualifying expenditure”

      2. 360BA.Expenditure not treated as qualifying expenditure if delay in carrying out works etc

    3. Chapter 3 QUALIFYING BUILDINGS AND QUALIFYING BUSINESS PREMISES

      1. 360C.Meaning of “qualifying building”

      2. 360D.Meaning of “qualifying business premises”

    4. Chapter 4 THE RELEVANT INTEREST IN THE QUALIFYING BUILDING

      1. 360E.General rule as to what is the relevant interest

      2. 360F.Interest acquired on completion of conversion

    5. Chapter 5 INITIAL ALLOWANCES

      1. 360G.Initial allowances

      2. 360H.Premises not qualifying business premises or relevant interest sold before premises first used or let

    6. Chapter 6 WRITING-DOWN ALLOWANCES

      1. 360I.Entitlement to writing-down allowances

      2. 360J.Amount of allowance

      3. 360K. Meaning of “ the residue of qualifying expenditure ”

    7. Chapter 7 GRANTS IN RESPECT OF QUALIFYING EXPENDITURE

      1. 360L.Grants affecting entitlement to allowances

    8. Chapter 8 BALANCING ADJUSTMENTS

      1. 360M.When balancing adjustments are made

      2. 360N.Balancing events

      3. 360O.Proceeds from balancing events

      4. 360P.Calculation of balancing adjustments

    9. Chapter 9 WRITING OFF QUALIFYING EXPENDITURE

      1. 360Q.Introduction

      2. 360R.Writing off initial allowances and writing-down allowances

      3. 360S.Treatment of demolition costs

    10. Chapter 10 ADDITIONAL VAT LIABILITIES AND REBATES

      1. 360T.Introduction

      2. 360U. Additional VAT liabilities and initial allowances

      3. 360V. Additional VAT liabilities and writing-down allowances

      4. 360W. Additional VAT liabilities and writing off initial allowances

      5. 360X. Additional VAT rebates and balancing adjustments

      6. 360Y. Additional VAT rebates and writing off qualifying expenditure

    11. Chapter 11 SUPPLEMENTARY PROVISIONS

      1. 360Z.Giving effect to allowances and charges: trades

      2. 360Z1.Giving effect to allowances and charges: lessors and licensees

      3. 360Z2.Apportionment of sums partly referable to non-qualifying assets

      4. 360Z3.Provisions applying on termination of lease

      5. 360Z4. Meaning of “lease” etc.

  7. Part 4 Agricultural buildings allowances

    1. Chapter 1 Introduction

      1. 361. Agricultural buildings allowances

      2. 362. Meaning of “husbandry”

      3. 363. Expenditure on the construction of a building

    2. Chapter 2 The relevant interest

      1. 364. General rule as to what is the relevant interest

      2. 365. Effect of creation of subordinate lease

      3. 366. Interest conveyed or assigned by way of security

      4. 367. Merger of leasehold interest

      5. 368. Provisions applying on ending of lease

    3. Chapter 3 Qualifying expenditure

      1. 369. Capital expenditure on construction of agricultural building

      2. 370. Purchase of relevant interest before first use of agricultural building

      3. 371. Different relevant interests in different parts of the related agricultural land

    4. Chapter 4 Writing-down allowances

      1. 372. Entitlement to writing-down allowance

      2. 373. Basic rule for calculating amount of allowance

      3. 374. First use of building not for purposes of husbandry, etc.

      4. 375. Effect of acquisition of relevant interest after first use of building

      5. 376. Calculation of allowance after acquisition

      6. 377. Chargeable period when balancing adjustment made

      7. 378. Allowance limited to residue of qualifying expenditure

      8. 379. Final writing-down allowance

    5. Chapter 5 Balancing adjustments

      1. General

        1. 380. When balancing adjustments are made

        2. 381. Balancing events (on making an election)

        3. 382. Requirements as to elections

        4. 383. Proceeds from balancing events

        5. 384. Exclusion of proportion of proceeds

      2. Calculation of balancing adjustments

        1. 385. Calculation of balancing adjustment

        2. 386. The residue of qualifying expenditure

        3. 387. Overall limit on balancing charge

        4. 388. Acquisition of relevant interest in part of land, etc.

        5. 389. Balancing allowances restricted where sale subject to subordinate interest etc.

        6. 390. Interpretation of section 389

    6. Chapter 6 Supplementary provisions

      1. Giving effect to allowances and charges

        1. 391. Trades

        2. 392.UK property businesses

      2. Meaning of “freehold interest”, “lease” etc.

        1. 393. Meaning of “freehold interest”, “lease”, etc.

  8. Part 4A FLAT CONVERSION ALLOWANCES

    1. Chapter 1 INTRODUCTION

      1. 393A. Flat conversion allowances

    2. Chapter 2 QUALIFYING EXPENDITURE

      1. 393B. Meaning of “qualifying expenditure”

    3. Chapter 3 QUALIFYING BUILDINGS AND QUALIFYING FLATS

      1. 393C. Meaning of “qualifying building”

      2. 393D. Meaning of “qualifying flat”

      3. 393E. High value flats

    4. Chapter 4 THE RELEVANT INTEREST IN THE FLAT

      1. 393F. General rule as to what is the relevant interest

      2. 393G. Interest acquired on completion of conversion

    5. Chapter 5 INITIAL ALLOWANCES

      1. 393H. Initial allowances

      2. 393I. Flat not qualifying flat or relevant interest sold before flat first let

    6. Chapter 6 WRITING-DOWN ALLOWANCES

      1. 393J. Entitlement to writing-down allowances

      2. 393K. Amount of allowance

      3. 393L. Meaning of “the residue of qualifying expenditure”

    7. Chapter 7 BALANCING ADJUSTMENTS

      1. 393M. When balancing adjustments are made

      2. 393N. Balancing events

      3. 393O. Proceeds from balancing events

      4. 393P. Calculation of balancing adjustments

    8. Chapter 8 WRITING OFF QUALIFYING EXPENDITURE

      1. 393Q. Introduction

      2. 393R. Writing off initial allowances and writing-down allowances

      3. 393S. Treatment of demolition costs

    9. Chapter 9 SUPPLEMENTARY PROVISIONS

      1. 393T. Giving effect to allowances and charges

      2. 393U. Apportionment of sums partly referable to non-qualifying assets

      3. 393V. Provisions applying on termination of lease

      4. 393W. Meaning of “lease” etc.

  9. Part 5 Mineral extraction allowances

    1. Chapter 1 Introduction

      1. 394. Mineral extraction allowances

      2. 395. Qualifying expenditure

      3. 396. Meaning of “mineral exploration and access”

      4. 397. Meaning of “mineral asset”

      5. 398. Relationship between main types of qualifying expenditure

      6. 399. Expenditure excluded from being qualifying expenditure

    2. Chapter 2 Qualifying expenditure on mineral exploration and access

      1. 400. Qualifying expenditure on mineral exploration and access

      2. 401. Pre-trading exploration expenditure

      3. 402. Pre-trading expenditure on plant or machinery

    3. Chapter 3 Qualifying expenditure on acquiring a mineral asset

      1. 403. Qualifying expenditure on acquiring a mineral asset

      2. 404. Exclusion of undeveloped market value of land

      3. 405. Qualifying expenditure where buildings or structures cease to be used

      4. 406. Reduction where premium relief previously allowed

    4. Chapter 4 Qualifying expenditure: second-hand assets

      1. Assets reflecting expenditure on mineral exploration and access

        1. 407. Acquisition of mineral asset owned by previous trader

        2. 408. Acquisition of oil licence from non-trader

        3. 409. Acquisition of other assets from non-traders

      2. Qualifying expenditure on assets limited by reference to historic costs

        1. 410. UK oil licence: limit is original licence payment

        2. 411. Assets generally: limit is residue of previous trader’s qualifying expenditure

        3. 412. Transfers of mineral assets within group: limit is initial group expenditure

        4. 413. Transfers of mineral assets within group: supplementary

    5. Chapter 5 Other kinds of qualifying expenditure

      1. 414. Expenditure on works likely to become valueless

      2. 415. Contribution to buildings or works for benefit of employees abroad

      3. 416. Non-ring fence trades: expenditure on restoration within 3 years of ceasing to trade

      4. 416ZA.Ring fence trades: expenditure on site restoration

      5. 416ZB.“Notional accounting period”

      6. 416ZC.Site restoration services supplied by connected person

      7. 416ZD.Restriction on allowance available

      8. 416ZE.Allowance where site restoration undertaken for other participators in oil field

    6. Chapter 5A First-year qualifying expenditure

      1. General

        1. 416A. First-year allowances available for certain types of qualifying expenditure

      2. Types of expenditure which may qualify for first year allowances

        1. 416B. Expenditure incurred by company for purposes of a ring fence trade

      3. Supplementary

        1. 416C. Time when expenditure is incurred

    7. Chapter 6 Allowances and charges

      1. First-year allowances

        1. 416D. First-year allowances

        2. 416E. Artificially inflated claims for first-year allowances

      2. Writing-down and balancing allowances and balancing charges

        1. 417. Determination of entitlement or liability

        2. 418. Amount of allowances and charges

      3. Unrelieved qualifying expenditure

        1. 419. Unrelieved qualifying expenditure

        2. 419A.Unrelieved qualifying expenditure: entry to cash basis

      4. Disposal values

        1. 420. Meaning of “disposal receipt”

        2. 421. Disposal of, or ceasing to use, asset

        3. 422. Use of asset otherwise than for permitted development etc.

        4. 423. Sections 421 and 422: amount of disposal value to be brought into account

        5. 424. Disposal value restricted in case of interest in land

        6. 425. Receipt of capital sum

      5. Cases in which a person is entitled to a balancing allowance

        1. 426. Pre-trading expenditure

        2. 427. Giving up exploration, search or inquiry

        3. 428. Ceasing to work mineral deposits

        4. 429. Buildings etc. for benefit of employees abroad ceasing to be used

        5. 430. Disposal of asset, etc.

        6. 431. Discontinuance of trade

        7. 431A.Foreign permanent establishment exemption

        8. 431B.Disposal value: no allowance/no charge cases

        9. 431C.Notional allowances

        10. 431D.Persons leaving cash basis

    8. Chapter 7 Supplementary provisions

      1. 432. Giving effect to allowances and charges

      2. 433. Treatment of demolition costs

      3. 434. Time when expenditure incurred

      4. 435. Shares in assets

      5. 436. Meaning of “development” etc.

  10. Part 6 Research and development allowances

    1. Chapter 1 Introduction

      1. 437. Research and development allowances

      2. 438. Expenditure on research and development

    2. Chapter 2 Qualifying expenditure

      1. 439. Qualifying expenditure

      2. 439A.Qualifying expenditure incurred for purposes of NI rate activity

      3. 440. Excluded expenditure: land

    3. Chapter 3 Allowances and charges

      1. 441. Allowances

      2. 442. Balancing charges

      3. 443. Disposal values and disposal events

      4. 444. Disposal events: chargeable period for which disposal value is to be brought into account

      5. 445. Costs of demolition

    4. Chapter 4 Additional VAT liabilities and rebates

      1. 446. Introduction

      2. 447. Additional VAT liability treated as additional expenditure etc.

      3. 448. Additional VAT rebate generates disposal value

      4. 449. Effect on balancing charges of additional VAT rebates in earlier chargeable periods

    5. Chapter 5 Supplementary provisions

      1. 450. Giving effect to allowances and charges

      2. 451. Sales: time of cessation of ownership

  11. Part 7 Know-how allowances

    1. Chapter 1 Introduction

      1. 452. Know-how allowances

      2. 453. Know-how as property

    2. Chapter 2 Qualifying expenditure

      1. 454. Qualifying expenditure

      2. 455. Excluded expenditure

    3. Chapter 3 Allowances and charges

      1. 456. Pooling of expenditure

      2. 457. Determination of entitlement or liability

      3. 458. Amount of allowances and charges

      4. 459. Available qualifying expenditure

      5. 460. Allocation of qualifying expenditure to pools

      6. 461. Unrelieved qualifying expenditure

      7. 461A.Unrelieved qualifying expenditure: entry to cash basis

      8. 462. Disposal values

      9. 462A.Persons leaving cash basis

      10. 463. Giving effect to allowances and charges

  12. Part 8 Patent allowances

    1. Chapter 1 Introduction

      1. 464. Patent allowances

      2. 465. Future patent rights

      3. 466. Grant of licences

    2. Chapter 2 Qualifying expenditure

      1. 467. Qualifying expenditure

      2. 468. Qualifying trade expenditure

      3. 469. Qualifying non-trade expenditure

    3. Chapter 3 Allowances and charges

      1. 470. Pooling of expenditure

      2. 471. Determination of entitlement or liability

      3. 472. Amount of allowances and charges

      4. 473. Available qualifying expenditure

      5. 474. Allocation of qualifying expenditure to pools

      6. 475. Unrelieved qualifying expenditure

      7. 475A.Unrelieved qualifying expenditure: entry to cash basis

      8. 476. Disposal value of patent rights

      9. 477. Limit on amount of disposal value

      10. 477A.Persons leaving cash basis

    4. Chapter 4 Giving effect to allowances and charges

      1. 478. Persons having qualifying trade expenditure

      2. 479. Persons having qualifying non-trade expenditure: income tax

      3. 480. Persons having qualifying non-trade expenditure: corporation tax

    5. Chapter 5 Supplementary provisions

      1. 481. Anti-avoidance: limit on qualifying expenditure

      2. 482. Sums paid for Crown use etc. treated as paid under licence

      3. 483. Meaning of “income from patents”

  13. Part 9 Dredging allowances

    1. Qualifying expenditure on dredging, etc.

      1. 484. Dredging allowances

      2. 485. Qualifying expenditure

      3. 486. Pre-trading expenditure of qualifying trades, etc.

    2. Writing-down and balancing allowances

      1. 487. Writing-down allowances

      2. 488. Balancing allowances

    3. Giving effect to allowances

      1. 489. Giving effect to allowances

  14. Part 10 Assured tenancy allowances

    1. Chapter 1 Introduction

      1. 490. Assured tenancy allowances

      2. 491. Allowances available in relation to old expenditure only

      3. 492. Meaning of “approved body”

      4. 493. Expenditure on the construction of a building

    2. Chapter 2 The relevant interest

      1. Introduction

        1. 494. Introduction

      2. The relevant interest in the building

        1. 495. General rule as to what is the relevant interest in the building

        2. 496. Interest acquired on completion of construction

        3. 497. Effect of creation of subordinate interest

        4. 498. Merger of leasehold interest

        5. 499. Provisions applying on termination of lease

      3. The relevant interest in the dwelling-house

        1. 500. The relevant interest in the dwelling-house

    3. Chapter 3 Qualifying expenditure

      1. 501. Capital expenditure on construction

      2. 502. Purchase of unused dwelling-house where developer not involved

      3. 503. Purchase of dwelling-house sold unused by developer

    4. Chapter 4 Qualifying dwelling-houses

      1. 504. Requirements relating to the landlord

      2. 505. Qualifying dwelling-houses: exclusions

      3. 506. Dwelling-house ceasing to be qualifying dwelling-house

    5. Chapter 5 Writing-down allowances

      1. Entitlement to and calculation of writing-down allowances

        1. 507. Entitlement to writing-down allowance

        2. 508. Basic rule for calculating amount of allowance

        3. 509. Calculation of allowance after sale of relevant interest

        4. 510. Allowance limited to residue of qualifying expenditure attributable to dwelling-house

      2. Interpretation

        1. 511. Qualifying expenditure attributable to dwelling-house

        2. 512. Residue of qualifying expenditure attributable to dwelling-house

    6. Chapter 6 Balancing adjustments

      1. General

        1. 513. When balancing adjustments are made

        2. 514. Balancing events

        3. 515. Proceeds from balancing events

      2. Calculation of balancing adjustments

        1. 516. Dwelling-house a qualifying dwelling-house throughout

        2. 517. Dwelling-house not a qualifying dwelling-house throughout

        3. 518. Overall limit on balancing charge

        4. 519. Recovery of old initial allowances made on incorrect assumptions

      3. Meaning of “the relevant period of ownership” etc.

        1. 520. The relevant period of ownership

        2. 521. Starting expenditure

        3. 522. Adjusted net cost

    7. Chapter 7 Writing off qualifying expenditure attributable to dwelling-house

      1. 523. Introduction

      2. 524. Writing off initial allowances

      3. 525. Writing off writing-down allowances

      4. 526. Writing off expenditure for periods when building not used as qualifying dwelling-house

      5. 527. Writing off or increase of expenditure where balancing adjustment made

      6. 528. Treatment of demolition costs

    8. Chapter 8 Supplementary provisions

      1. 529. Giving effect to allowances and charges

      2. 530. Apportionment of sums partly referable to non-qualifying assets

      3. 531. Meaning of “dwelling-house”, “lease” etc.

  15. Part 11 Contributions

    1. Chapter 1 Exclusion of expenditure met by contributions

      1. Rules excluding contributions

        1. 532. The general rule excluding contributions

        2. 533. Exclusion of contributions to dredging

      2. Exceptions to the general rule excluding contributions

        1. 534. Northern Ireland regional development grants

        2. 535. Insurance or compensation money

        3. 536. Contributions not made by public bodies and not eligible for tax relief

    2. Chapter 2 Contribution allowances

      1. Contribution allowances under Parts 2, 2A, 3, 4 and 5

        1. 537.Conditions for contribution allowances under Parts 2, 2A ... and 5

        2. 538. Plant and machinery

        3. 538A.Buildings and structures

        4. 539. Industrial buildings

        5. 540. Agricultural buildings

        6. 541. Mineral extraction

      2. Effect of transfers of C’s trade on contribution allowances under Parts 3, 4 and 5

        1. 542. Transfer of C’s trade ...

      3. Contribution allowances under Part 9

        1. 543. Contribution allowances under Part 9

  16. Part 12 Supplementary provisions

    1. Chapter 1 LONG-TERM business

      1. 544. Management assets

      2. 545. Investment assets

    2. Chapter 2 Additional VAT liabilities and rebates: interpretation, etc.

      1. 546. Introduction

      2. 547.“Additional VAT liability” and “additional VAT rebate”

      3. 548. Time when additional VAT liability or rebate is incurred or made

      4. 549. Chargeable period in which, and time when, additional VAT liability or rebate accrues

      5. 550. Apportionment of additional VAT liabilities and rebates

      6. 551. Supplementary

    3. Chapter 3 Disposals of oil licences: provisions relating to Parts 5 and 6

      1. Introduction

        1. 552. Meaning of “oil licence” and “interest in an oil licence”

      2. Oil licences relating to undeveloped areas

        1. 553. Consideration to be treated as nil

        2. 554. Circumstances in which oil licence relates to undeveloped area

      3. Disposal of oil licence with exploitation value

        1. 555. Disposal of oil licence with exploitation value

      4. Minor definitions

        1. 556. Minor definitions

    4. Chapter 4 Partnerships, successions and transfers

      1. 557. Application of sections 558 and 559

      2. 558. Effect of partnership changes

      3. 559. Effect of successions

      4. 560. Transfer of insurance company business

      5. 560A.Transfers of trade without a change of ownership

      6. 561. Transfer or division of UK business

      7. 561A. Transfer of asset by reason of cross-border merger

    5. Chapter 5 Miscellaneous

      1. Apportionment

        1. 562. Apportionment where property sold together

      2. Procedure for determining certain questions

        1. 563. Procedure for determining certain questions affecting one or more persons

        2. 564. Questions to which procedure in section 563 applies

      3. Tax agreements for income tax purposes

        1. 565. Tax agreements for income tax purposes

      4. Companies not resident in the United Kingdom

        1. 566. Companies not resident in the United Kingdom

      5. Sales treated as being for alternative amount

        1. 567. Sales treated as being for alternative amount: introductory

        2. 568. Sales treated as being at market value

        3. 569. Election to treat sale as being for alternative amount

        4. 570. Elections: supplementary

      6. Anti-avoidance

        1. 570A.Avoidance affecting proceeds of balancing event

    6. Chapter 6 Final provisions

      1. Orders and regulations

        1. 570B.Orders and regulations made by Treasury or Commissioners

      2. General interpretation

        1. 571. Application of Act to parts of assets

        2. 572. References to sale of property and time of sale

        3. 573. Transfers treated as sales

        4. 573A.Special tax sites

        5. 574. Meaning of “control”

        6. 575.Meaning of “connected” persons

        7. 575A.Section 575: supplementary

        8. 576. Meaning of “the Inland Revenue” etc.

        9. 577. Other definitions

      3. Amendments, repeals, citation etc.

        1. 578. Consequential amendments

        2. 579. Commencement and transitional provisions and savings

        3. 580. Repeals

        4. 581. Citation

  17. Schedules

    1. SCHEDULE A1

      First-year tax credits

      1. Part 1 Entitlement to first-year tax credits

        1. Entitlement to first-year tax credits

          1. 1.(1) A company may claim a first-year tax credit for...

        2. Amount of first-year tax credit

          1. 2.(1) The amount of the first-year tax credit to which...

        3. Meaning of “relevant first-year expenditure”

          1. 3.(1) In this Schedule “ relevant first-year expenditure ” means...

        4. Incurring a loss in carrying on a qualifying activity

          1. 4.Paragraphs 5 to 9 apply for the interpretation of paragraph...

          2. 5.(1) This paragraph applies where the qualifying activity is an...

          3. 6.(1) This paragraph applies where the qualifying activity is an...

          4. 7.(1) This paragraph applies where— (a) the qualifying activity is...

          5. 8.(1) This paragraph applies where the qualifying activity is managing...

          6. 9.(1) This paragraph applies where the qualifying activity is basic...

        5. Unrelieved loss

          1. 10.Paragraphs 11 to 16 apply for the interpretation of paragraph...

          2. 11.(1) This paragraph applies where the qualifying activity is a...

          3. 12.(1) This paragraph applies where the qualifying activity is an...

          4. 13.(1) This paragraph applies where the qualifying activity is an...

          5. 14.(1) This paragraph applies where— (a) the qualifying activity is...

          6. 15.(1) This paragraph applies where the qualifying activity is managing...

          7. 16.(1) This paragraph applies where the qualifying activity is basic...

        6. Total amount of company's PAYE and NICs liabilities

          1. 17.(1) For the purposes of paragraph 2(2)(a) the total amount...

      2. Part 2 Giving effect to first-year tax credits

        1. Payment in respect of first-year tax credit

          1. 18.(1) Where a company is entitled to a first-year tax...

        2. Restriction on losses carried forward

          1. 19.(1) For the purposes of the relieving provisions (see paragraph...

          2. 20.The relieving provisions are— (a) where the qualifying activity is...

          3. 21.(1) This paragraph applies if the qualifying activity is an...

          4. 22.(1) This paragraph applies where the qualifying activity is basic...

        3. Payment in respect of first-year tax credit not income

          1. 23.A payment in respect of a first-year tax credit is...

      3. Part 3 Clawback of first-year tax credit

        1. Circumstances in which first-year tax credit clawed back

          1. 24.(1) This paragraph applies where— (a) a company to which...

        2. Interpretation

          1. 25.(1) This paragraph applies for the interpretation of this Part...

        3. Amount of restored loss

          1. 26.(1) The amount of the restored loss is— ( LS...

        4. Clawback of first-year tax credits: administrative provision

          1. 27.(1) Where paragraph 24 applies, all such assessments and adjustments...

      4. Part 4 Supplementary

        1. Artificially inflated claims

          1. 28.(1) To the extent that a transaction is attributable to...

        2. Interpretation

          1. 29.In this Schedule— “ HMRC ” means the Commissioners for...

    2. Schedule 1

      Abbreviations and defined expressions

      1. Part 1 Abbreviations

      2. Part 2 Defined expressions

    3. Schedule 2

      Consequential amendments

      1. The Taxes Management Act 1970 (c. 9)

        1. 1. Section 42 (procedure for making claims etc.)

        2. 2. Section 57 (regulations about appeals)

        3. 3. Section 58 (proceedings in tax cases in Northern Ireland)

        4. 4. Section 98 (special returns, etc.)

        5. 5.

      2. The Finance Act 1982 (c. 39)

        1. 6. Section 137 (expenditure met by regional development plans to be disregarded for certain purposes)

      3. The London Regional Transport Act 1984 (c. 32)

        1. 7. Schedule 5 (transitional provisions and savings)

      4. The Films Act 1985 (c. 21)

        1. 8. Section 6 (certification of films as British films)

        2. 9. Schedule 1 (certification of films as British films)

      5. The Trustee Savings Banks Act 1985 (c. 58)

        1. 10. Schedule 2 (taxation)

      6. The Income and Corporation Taxes Act 1988 (c. 1)

        1. 11.

        2. 12.

        3. 13.

        4. 14.

        5. 15.

        6. 16.

        7. 17.

        8. 18.

        9. 19.

        10. 20.

        11. 21.

        12. 22.

        13. 23.

        14. 24.

        15. 25.

        16. 26.

        17. 27.

        18. 28.

        19. 29. Section 384 (restrictions on right of set-off)

        20. 30.

        21. 31.

        22. 32.

        23. 33.

        24. 34.

        25. 35.

        26. 36.

        27. 37.

        28. 38.

        29. 39. Sections 434D and 434E (capital allowances: management assets; investment assets)

        30. 40.

        31. 41.

        32. 42.

        33. 43.

        34. 44. Sections 520 to 523 (patents)

        35. 45.

        36. 46.

        37. 47. Section 530 (disposal of know-how)

        38. 48.

        39. 49.

        40. 50.

        41. 51.

        42. 52.

        43. 53.

        44. 54.

        45. 55.

        46. 56.

        47. 57.

        48. 58.

        49. 59. Section 831 (interpretation of Act)

        50. 60.

        51. 61. Section 834 (interpretation of the Corporation Tax Acts)

        52. 62.

        53. 63. Schedule 18 (group relief)

        54. 64. Schedule 19AC (modification of Act in relation to overseas life insurance companies)

        55. 65. Schedule 21 (tax relief in connection with schemes for rationalising industry and other redundancy schemes)

        56. 66. Schedule 24 (assumptions for calculating chargeable profits, creditable tax and corresponding United Kingdom tax of foreign companies)

        57. 67.

        58. 68.

      7. The Finance Act 1988 (c. 39)

        1. 69. Schedule 12 (building societies: change of status)

      8. The Finance Act 1989 (c. 26)

        1. 70.

      9. The Electricity Act 1989 (c. 29)

        1. 71. Schedule 11 (taxation provisions)

      10. The Finance Act 1990 (c. 29)

        1. 72. Section 126 (pools payments for football ground improvements)

      11. The Finance Act 1991 (c. 31)

        1. 73.

        2. 74. Section 78 (sharing of transmission facilities)

      12. The Social Security Contributions and Benefits Act 1992 (c. 4)

        1. 75. Schedule 2 (levy of Class 4 contributions with income tax)

      13. The Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)

        1. 76. Schedule 2 (levy of Class 4 contributions with income tax)

      14. The Taxation of Chargeable Gains Act 1992 (c. 12)

        1. 77. Section 37 (consideration chargeable to tax on income)

        2. 78. Section 41 (restriction of losses by reference to capital allowances etc.)

        3. 79. Section 195 (allowance of certain drilling expenditure)

        4. 80. Section 288 (interpretation)

        5. 81. Schedule 3 (assets held on 31st March 1982)

      15. The Finance (No. 2) Act 1992 (c. 48)

        1. 82. New sections 40A to 40D (films)

        2. 83. Section 41 (relief for preliminary expenditure)

        3. 84. Section 42 (relief for production or acquisition expenditure)

        4. 85. Section 43 (interpretation of sections 41 and 42)

        5. 86.

        6. 87. Schedule 17 (Northern Ireland electricity)

      16. The Finance Act 1993 (c. 34)

        1. 88. Section 92 (the basic rule: sterling to be used)

        2. 89. Section 93 (use of currency other than sterling)

      17. The Agriculture Act 1993 (c. 37)

        1. 90. Schedule 2 (provisions relating to carrying out approved schemes or reorganisation)

      18. The Finance Act 1994 (c. 9)

        1. 91. Schedule 24 (provisions relating to the Railways Act 1993)

        2. 92. Schedule 25 (Northern Ireland Airports Limited)

      19. The Coal Industry Act 1994 (c. 21)

        1. 93. Schedule 4 (taxation provisions)

      20. The Atomic Energy Authority Act 1995 (c. 37)

        1. 94. Schedule 3 (taxation provisions)

      21. The Finance Act 1996 (c. 8)

        1. 95. Section 151 (benefits under pilot schemes)

        2. 96.

      22. The Broadcasting Act 1996 (c. 55)

        1. 97. Schedule 7 (transfer schemes relating to BBC transmission network: taxation provisions)

      23. The Finance Act 1997 (c. 16)

        1. 98. Schedule 12 (leasing arrangements: finance leases and loans)

      24. The Finance (No. 2) Act 1997 (c. 58)

        1. 99. Section 48 (films: relief for production or acquisition expenditure)

      25. The Finance Act 1998 (c. 36)

        1. 100. Section 117 (company tax returns, assessments and related matters)

        2. 101.

        3. 102.

        4. 103. Schedule 18 (company tax returns, assessments and related matters)

      26. The Finance Act 1999 (c. 16)

        1. 104.

      27. The Greater London Authority Act 1999 (c. 29)

        1. 105. Schedule 33 (taxation)

      28. The Finance Act 2000 (c. 17)

        1. 106. Section 105 (corporation tax: use of currencies other than sterling)

        2. 107.

        3. 108. Schedule 22 (tonnage tax)

      29. The Transport Act 2000 (c. 38)

        1. 109. Schedule 26 (transfers: tax)

    4. Schedule 3

      Transitionals and savings

      1. Part 1 Continuity of the law

        1. 1.The repeal of provisions and their enactment in a rewritten...

        2. 2.Paragraph 1— (a) does not apply to any change in...

        3. 3.Any subordinate legislation or other thing which—

        4. 4.Any reference (express or implied) in any enactment, instrument or...

        5. 5.Any reference (express or implied) in any enactment, instrument or...

        6. 6.Paragraphs 1 to 5 have effect instead of section 17(2)...

        7. 7.Paragraphs 4 and 5 apply only in so far as...

      2. Part 2 Changes in the law

        1. 8.(1) This paragraph applies where, in the case of any...

      3. Part 3 General

        1. Capital expenditure

          1. 9.Subsections (2) and (3) of section 4 apply with the...

        2. Exclusion of double relief

          1. 10.Section 9 does not apply in relation to expenditure incurred...

      4. Part 4 Plant and machinery allowances

        1. Introduction

          1. 11. Use for qualifying activity of plant or machinery provided for other purposes

          2. 12. Use for qualifying activity of plant or machinery which is a gift

        2. Qualifying expenditure

          1. 13. Buildings, structures and land

        3. First-year qualifying expenditure

          1. 14.

        4. Hire-purchase and similar contracts

          1. 15. Plant or machinery acquired under hire purchase etc.

          2. 16. Plant or machinery on hire purchase etc.: fixtures

          3. 17. Plant or machinery provided by lessee

        5. Computer software

          1. 18. Software and rights to software

        6. Cars, etc.

          1. 19.

        7. Long-life assets

          1. 20. Long-life asset expenditure

        8. Overseas leasing

          1. 21. Meaning of “overseas leasing”

          2. 22. Recovery of first-year allowances in case of joint lessees

          3. 23. Letting ships or aircraft to obtain old first-year allowance not a qualifying purpose

        9. Ships: deferments etc.

          1. 24. Further registration requirement

        10. Mining and oil industries

          1. 25. Pre-trading expenditure on mineral exploration and access

          2. 26. Abandonment expenditure incurred before cessation of ring fence trade

          3. 27. Abandonment expenditure incurred after cessation of ring fence trade

          4. 28. Oil production sharing contracts

        11. Fixtures

          1. 29. Meaning of “interest in land” for purposes of Chapter 14 of Part 2 (fixtures)

          2. 30. Equipment lessors

          3. 31. Equipment lessee has qualifying activity etc.

          4. 32. Equipment lessor has right to sever fixture that is not part of building

          5. 33. Equipment lease is part of affordable warmth programme

          6. 34. Purchaser of land giving consideration for fixture

          7. 35. Purchaser of land discharging obligations of equipment lessee

          8. 36. Incoming lessee where lessor entitled to allowances

          9. 37. Incoming lessee where lessor not entitled to allowances

          10. 38. Fixture on which a plant and machinery allowance has been claimed

          11. 39. Fixture on which industrial buildings allowance has been made

          12. 40. Fixture on which research and development allowance has been made

          13. 41. Disposal value in relation to fixtures: general

        12. Assets provided or used only partly for qualifying activity

          1. 42. Effect of significant reduction in use for purposes of qualifying activity

        13. Anti-avoidance

          1. 43. Relevant transactions: sale, hire-purchase (etc.) and assignment

          2. 44. Hire purchase etc. and finance leases

          3. 45. Sale and finance leasebacks

        14. Additional VAT liabilities and rebates

          1. 46.

          2. 47.

          3. 48.

          4. 49.

          5. 50.

          6. 51.

        15. Supplementary provisions

          1. 52. Successions by beneficiaries

          2. 53.Subsections (6) and (7) of section 268 do not apply...

        16. General

          1. 54. Vehicles provided by employees in 1990-91

          2. 55. Certain expenditure incurred before 6th April 1976

      5. Part 5 Industrial buildings allowances

        1. Industrial buildings

          1. 56. Bridge undertakings

          2. 57. Building used by more than one licensee

          3. 58. Qualifying hotels

          4. 59. Non-industrial part of building disregarded

        2. Qualifying expenditure

          1. 60. Purchase of used building from developer

          2. 61. Qualifying enterprise zone expenditure

          3. 62.Sections 301, 303 and 304 do not apply in relation...

          4. 63.If— (a) the relevant interest in a building was sold...

        3. Initial allowances

          1. 64. Building occupied by qualifying licensee

          2. 65. Grants affecting entitlement to initial allowances

        4. Writing-down allowances

          1. 66. Basic rule for calculating amount of allowance

          2. 67. Calculation of amount after relevant event

        5. Balancing adjustments

          1. 68. When balancing adjustments are made

          2. 69. Net allowance given

          3. 70.For the purposes of section 324 an allowance is treated...

          4. 71. Balancing adjustment on realisation of capital value

        6. Writing off qualifying expenditure

          1. 72. Writing off qualifying expenditure when building not an industrial building

          2. 73. Crown or other person not within the charge to tax entitled to the relevant interest

        7. Highway undertakings

          1. 74. Special provisions relating to highway concessions

        8. Additional VAT liabilities and rebates

          1. 75. Additional VAT liabilities and initial allowances: 1992-93 cases

          2. 76. Additional VAT liabilities and initial allowances: further case

          3. 77. 1992-93 qualifying expenditure

        9. Supplementary provisions

          1. 78. Arrangements having an artificial effect on pricing

        10. General

          1. 79. Expenditure on preparatory work on land where building used before 6th April 1956

      6. Part 6 Agricultural buildings allowances

        1. 80. Overall limit on balancing charge

        2. 81. Meaning of “freehold interest in land” for purposes of Part 4

        3. 82. Exclusion of expenditure incurred before 1st April 1986

        4. 83. The writing-down period

      7. Part 7 Mineral extraction allowances

        1. Qualifying expenditure on acquiring a mineral asset

          1. 84. Qualifying expenditure where buildings or structures cease to be used

        2. Qualifying expenditure: second-hand assets

          1. 85. Claims before 26th November 1996 in respect of acquisition of mineral asset owned by previous trader

          2. 86. Acquisition of oil licence from non-trader before 13th September 1995

          3. 87. Restrictions on qualifying expenditure in case of UK oil licence and certain other assets inapplicable for expenditure pre-16th July 1985

          4. 88. Expenditure incurred pre-1st April 1986

      8. Part 8 Research and development allowances

        1. 89. Expenditure incurred partly on research and development

        2. 90. References to research and development in relation to new trades

        3. 91. Disposal of oil licences

      9. Part 9 Patent allowances

        1. Expenditure incurred before 1st April 1986

          1. 92. Scope of paragraphs 93 to 101

          2. 93. Qualifying expenditure and unrelieved qualifying expenditure

          3. 94. Entitlement to writing-down allowances

          4. 95. The writing-down period

          5. 96. Calculation of writing-down allowances

          6. 97. End of writing-down allowances

          7. 98. Reduced writing-down allowance

          8. 99. Balancing allowance on sale or expiry of patent rights

          9. 100. Balancing charges

          10. 101. Giving effect to allowances and charges

        2. Supplementary provisions

          1. 102. Limit on qualifying expenditure

      10. Part 10 Dredging allowances

        1. 103. Writing-down allowances

        2. 104. Balancing allowances

        3. 105. The writing-down period

      11. Part 11 Contributions

        1. 106. Regional development grants

        2. 107. Contributions not made by public bodies and not eligible for tax relief

        3. 108. Conditions for allowances

        4. 109. Agricultural buildings

        5. 110.Sections 368, 375 and 379 apply with the necessary modifications,...

      12. Part 12 Supplemental

        1. 111. Transfer of insurance company business

        2. 112. Election regarding sale consideration

      13. Part 13 Other enactments

        1. 113.(1) Subsections (2) and (3) of section 578A of ICTA...

        2. 114.Paragraph 18A of Schedule 30 to ICTA (transitional provisions and...

        3. 115.The repeals made by CAA 1990 do not have effect...

        4. 116.(1) Sections 40A to 40D of F(No.2)A 1992 (films) apply...

        5. 117.Section 40D of F(No.2)A 1992 (election relating to tax treatment...

    5. Schedule 4

      Repeals

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