46(1)For the purposes of section 236(1)(a) (entitlement to first-year allowance in respect of additional VAT liability where original expenditure was first-year qualifying expenditure), first-year qualifying expenditure includes expenditure which is first-year qualifying expenditure under paragraph 47 or 48.
(2)A first-year allowance under this paragraph is made for the chargeable period in which the additional VAT liability accrues.
(3)The amount of such an allowance is a percentage of the additional VAT liability in respect of which the allowance is made, as shown in the Table—
Amount of first-year allowances (pre-commencement original expenditure)
| Type of original first-year qualifying expenditure | Amount |
|---|---|
| Expenditure qualifying under paragraph 47 (expenditure incurred 1992-93). | 40% |
| Expenditure qualifying under paragraph 48 (expenditure incurred 1997-98 by small or medium-sized enterprises) which is not long-life asset expenditure. | 50% |
| Expenditure qualifying under paragraph 48 (expenditure incurred 1997-98 by small or medium-sized enterprises) which is long-life asset expenditure. | 12% |