C1Part 2 Plant and machinery allowances
Chapter 18 Additional VAT liabilities and rebates
Additional VAT liability
236 Additional VAT liability generates first-year allowance
1
Subsection (2) applies if—
a
the original expenditure was first-year qualifying expenditure, and
b
the additional VAT liability is incurred at a time when the plant or machinery is provided for the purposes of the qualifying activity.
2
The additional VAT liability is to be regarded for the purposes of this Part as first-year qualifying expenditure which—
a
is incurred on the same plant or machinery and is the same type of first-year qualifying expenditure as the original expenditure, and
b
entitles the person incurring the liability to a first-year allowance for the chargeable period in which the liability accrues.
3
Subsections (3) and (4) of section 52 apply to first-year qualifying expenditure constituted by the additional VAT liability as they apply to other first-year qualifying expenditure.
4
This section is subject to sections 237 and 241.
Pt. 2 (ss. 11-270) modified (prosp.) by Proceeds of Crime Act 2002 (c. 29), ss. 448, 458(1), Sch. 10 para. 12 (with para. 17(1))