218 Restriction on B’s qualifying expenditure[F1: section 214 or 216] U.K.
(1)If this section applies as a result of [F2section 214 or 216], the amount, if any, by which B’s expenditure under the relevant transaction exceeds D is to be left out of account in determining B’s available qualifying expenditure.
D is defined in subsections (2) and (3).
(2)If S is required to bring a disposal value into account under this Part because of the relevant transaction, D is that disposal value.
(3)If S is not required to bring a disposal value into account under this Part because of the relevant transaction, 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, the amount of that expenditure;
(c)if a person connected with S incurred capital expenditure on the provision of the plant or machinery, the amount of that expenditure.
[F3(4)This section does not apply if plant or machinery is the subject of a sale and finance leaseback (as defined in section 221), but see section 225.]
[F4(5)This section is subject to section 218ZA(3).]
Textual Amendments
F1Words in s. 218 heading inserted (with effect in accordance with Sch. 9 para. 9(1)(3) of the amending Act) by Finance Act 2012 (c. 14), Sch. 9 para. 5(4)
F2Words in s. 218(1) substituted (with effect in accordance with Sch. 9 para. 9(1)(3) of the amending Act) by Finance Act 2012 (c. 14), Sch. 9 para. 5(2)
F3S. 218(4) substituted (with effect in accordance with Sch. 20 para. 6(19) of the amending Act) by Finance Act 2008 (c. 9), Sch. 20 para. 6(9)
F4S. 218(5) inserted (with effect in accordance with Sch. 9 para. 9(1)(3) of the amending Act) by Finance Act 2012 (c. 14), Sch. 9 para. 5(3)