187 Fixture on which a research and development allowance has been madeU.K.
(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—
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—
(a)the disposal value of the Part 6 asset when the past owner ceased to own it, and
(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.