Finance Act 2009, Paragraph 21 is up to date with all changes known to be in force on or before 02 March 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
21U.K.In CAA 2001, after section 229 insert—
(1)This section applies where—
(a)a person (“S”) transfers plant or machinery to another person (“B”),
(b)at any time after the date of the transfer, the plant or machinery is available to be used by S, or a person (other than B) who is connected with S (“CS”),
(c)it is available to be so used under a contract which provides that S or CS is to or may become the owner of the plant or machinery on the performance of the contract, and
(d)S or CS incurs capital expenditure on the provision of the plant or machinery under that contract.
(2)No annual investment allowance or first-year allowance is to be made in respect of the expenditure of S or CS under the contract.
(3)The amount, if any, by which E exceeds D is to be left out of account in determining the available qualifying expenditure of S or CS.
(4)E is the capital expenditure of S or CS on the provision of the plant or machinery under the contract referred to in subsection (1)(c).
(5)If S is required to bring a disposal value into account under this Part because of the transfer referred to in subsection (1)(a), D is that disposal value.
(6)Otherwise, D is whichever of the following is the smallest—
(a)the market value of the plant or machinery;
(b)if S incurred capital expenditure on the provision of the plant or machinery before the transfer referred to in subsection (1)(a), the amount of that expenditure;
(c)if a person connected with S incurred capital expenditure on the provision of the plant or machinery before that transfer, the amount of that expenditure.
(7)Sections 214 and 215 do not apply in relation to the contract referred to in subsection (1)(c).
(8)Section 70Y(3) applies to references in this section to a transfer of plant or machinery by a person.
(9)For the purposes of this section a transfer involving the grant of a lease takes place on the commencement of the term of the lease.”
All content is available under the Open Government Licence v3.0 except where otherwise stated. This site additionally contains content derived from EUR-Lex, reused under the terms of the Commission Decision 2011/833/EU on the reuse of documents from the EU institutions. For more information see the EUR-Lex public statement on re-use.
