No versions valid at: 22/03/2001
Point in time view as at 22/03/2001. This version of this cross heading contains provisions that are not valid for this point in time.
Capital Allowances Act 2001, Cross Heading: First-year allowances is up to date with all changes known to be in force on or before 10 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.
Valid from 24/07/2002
Textual Amendments
F1S. 416D and preceding crossheading inserted (with effect as mentioned in s. 63(3) of the amending Act) by Finance Act 2002 (c. 23), s. 63, Sch. 21 para. 10
(1)A person is entitled to a first-year allowance in respect of first-year qualifying expenditure if the expenditure is incurred in a chargeable period to which this Act applies.
(2)Any first-year allowance is made for the chargeable period in which the first-year qualifying expenditure is incurred.
(3)The amount of the allowance is a percentage of the first-year qualifying expenditure in respect of which the allowance is made, as shown in the Table—
Amount of first-year allowances
| Type of first-year qualifying expenditure | Amount |
|---|---|
| Expenditure qualifying under section 416B (expenditure incurred wholly for the purposes of a ring fence trade) | 100% |
(4)A person who is entitled to a first-year allowance may claim the allowance in respect of the whole or a part of the first-year qualifying expenditure.
(5)This section is subject to section 416E (artificially inflated claims for first-year allowances).
(1)To the extent that a transaction is attributable to arrangements entered into wholly or mainly for a disqualifying purpose, it shall be disregarded in determining for a chargeable period the amount of any first-year allowance to which a person is entitled.
(2)For the purposes of this section, arrangements are entered into wholly or mainly for a “disqualifying purpose” if their main object, or one of their main objects, is to enable a person to obtain—
(a)a first-year allowance to which he would not otherwise be entitled, or
(b)a first-year allowance of a greater amount than that to which he would otherwise be entitled.
(3)In this section “arrangements” includes any scheme, agreement or understanding, whether or not legally enforceable.]]
Textual Amendments
F2S. 416E inserted (with effect as mentioned in s. 63(3) of the amending Act) by Finance Act 2002 (c. 23), s. 63, Sch. 21 para. 11
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