C1C5C4C3C6C7C8C9Part 2 Plant and machinery allowances
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
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
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
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 19
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 35
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 paras. 36, 37
Pt. 2 modified (21.7.2009) by Finance Act 2009 (c. 10), s. 24
Chapter 17F16Other anti-avoidance
Pt. 2 Ch. 17 heading substituted (8.4.2010) (with effect in accordance with Sch. 4 para. 5 to the amending Act) by Finance Act 2010 (c. 13), Sch. 4 para. 3
F1Finance leases and certain operating leases
S. 219 cross-heading substituted (with effect in accordance with Sch. 9 para. 15(6) of the amending Act) by Finance Act 2006 (c. 25), Sch. 9 para. 15(5)
220 Allocation of expenditure to a chargeable period
F2A1
Subsection (1) applies to a company for a chargeable period if—
a
at the end of the F14CTA period of account which is the basis period for the chargeable period, the company is a member of a group, and
1
Subject to subsection (2), if F4the company incurs at any time in F5the chargeable period capital expenditure on the provision of plant or machinery for leasing under a finance lease F6or under a qualifying operating lease (see subsection (4)) —
a
the part of the expenditure which is proportional to the part of that chargeable period falling before that time is not to be taken into account in determining that F7company's available qualifying expenditure for that period, but
b
this does not prevent that part of the expenditure being taken into account in determining that F7company's available qualifying expenditure for any subsequent chargeable period.
2
Subsection (1)(a) does not apply to a chargeable period if a disposal event occurs in that period in respect of the plant or machinery.
F33
The following provisions have effect for the interpretation of this section.
4
A “qualifying operating lease” is a plant or machinery lease that meets the following conditions—
a
it is not a finance lease,
b
it is a funding lease,
c
its term is longer than 4 years but not longer than 5 years.
5
6
7
The provisions of section 170(3) to (6) of TCGA 1992 apply to determine for the purposes of this section—
a
whether a company is member of a group, and
b
which company is the principal company of the group.
8
But, in applying those provisions for the purposes of this section, a company (“the subsidiary company”) that does not have ordinary share capital is to be treated as being a qualifying 75% subsidiary of another company (“the parent company”) if the parent company—
a
has control of the subsidiary companyF8..., and
b
is beneficially entitled to the appropriate proportion of profits and assets.
9
The parent company is beneficially entitled to the appropriate proportion of profits and assets if (and only if) it—
a
is beneficially entitled to at least 75% of any profits available for distribution to equity holders of the subsidiary company, and
b
would be beneficially entitled to at least 75% of any assets of the subsidiary company available for distribution to its equity holders on a winding-up.
10
The provisions of F13Chapter 6 of Part 5 of CTA 2010 (equity holders and profits or assets etc) also apply for the purposes of this section.
11
In this section, the following expressions have the same meaning as in Chapter 6A of Part 2 (interpretation of provisions about long funding leases)—
“funding lease”,
“plant or machinery lease”,
“term”, in relation to a lease.
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)