C1C7C4C6C5C3Part 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 modified (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 para. 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. 9 para. 10 (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
Chapter 18 Additional VAT liabilities and rebates
Anti-avoidance
243 Restriction on B’s qualifying expenditure: sale and finance leaseback
1
This section applies instead of section 224 (restriction on B’s qualifying expenditure in case of sale and finance leaseback) if—
a
apart from this subsection, section 224 would apply, and
b
an additional VAT liability has been incurred by B.
2
The amount, if any, by which E exceeds D is to be left out of account in determining B’s available qualifying expenditure.
E and D are defined in subsections (3) to (7).
3
Except where subsection (7) applies, E is the sum of—
a
B’s expenditure under the relevant transaction, and
b
any additional VAT liability incurred by B in respect of that expenditure.
4
If S is required to bring a disposal value into account under this Part because of the relevant transaction, D is that disposal value (determined in accordance with section 222).
5
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 notional written-down value of that capital expenditure;
c
if a person connected with S incurred capital expenditure on the provision of the plant or machinery, the notional written-down value of that capital expenditure.
6
In this section “the notional written-down value”, in relation to expenditure incurred by a person on the provision of plant or machinery, has the meaning given by section 222(3).
7
If—
a
S is not required to bring a disposal value into account under this Part because of the relevant transaction,
b
the smallest amount under subsection (5) is the market value of the plant or machinery, and
c
that value is determined inclusive of value added tax,
E is the amount of B’s expenditure under the relevant transaction.
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)