C2

C1C5C4C3C6C7C8C9C10Part 2 Plant and machinery allowances

Annotations:
Modifications etc. (not altering text)
C1

Pt. 2 modified (24.2.2003) by Proceeds of Crime Act 2002 (c. 29), s. 458(1), Sch. 10 para. 12 (with Sch. 10 para. 17(1)); S.I. 2003/120, art. 2, Sch. (with arts. 34) (as amended (20.2.2003) by S.I. 2003/333, art. 14)

C5

Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 10, 22 (with s. 38(2) ); S.I. 2004/2575 , art. 2(1) , Sch. 1

C4

Pt. 2 modified (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 9(2), 21(2) (with s. 38(2)); S.I. 2004/2575, art. 2(1) , Sch. 1

C3

Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 4 para. 4 ; S.I. 2004/2575 , art. 2(1) , Sch. 1

C6

Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 19

C7

Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 35

C8

Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 paras. 36, 37

C9

Pt. 2 modified (21.7.2009) by Finance Act 2009 (c. 10), s. 24

C10

Pt. 2 modified (17.7.2013) by Finance Act 2013 (c. 29), s. 73(7)-(11) (with s. 73(6))

C6C7C8Chapter 14 Fixtures

Restrictions on amount of qualifying expenditure

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

1

This section applies if—

a

a person has at any time claimed an allowance to which he is entitled under Part 6 (research and development allowances) in respect of qualifying expenditure under that Part (“Part 6 expenditure”),

b

an asset representing the whole or part of the Part 6 expenditure (“the Part 6 asset”) has ceased to be owned by that person (“the past owner”),

c

the Part 6 asset was or included plant or machinery, and

d

the current owner makes a claim under this Part in respect of expenditure (“new expenditure”) incurred—

i

on the provision of the plant or machinery, and

ii

at a time when it is a fixture.

2

If the new expenditure exceeds the maximum allowable amount, the excess is to be left out of account in determining the current owner’s qualifying expenditure.

3

The maximum allowable amount is—

FTxAmath

where—

  • F is the part of the consideration for the disposal of the Part 6 asset by the past owner that is attributable to the fixture,

  • T is the total consideration for that disposal, and

  • A is an amount equal to whichever is the smaller of—

    1. a

      the disposal value of the Part 6 asset when the past owner ceased to own it, and

    2. b

      so much of the Part 6 expenditure as related to the provision of the Part 6 asset.

4

For the purposes of this section the current owner of the plant or machinery is—

a

the person who acquired the Part 6 asset from the past owner, or

b

any person who is subsequently treated as the owner of the plant or machinery.