Capital Allowances Act 2001 (c. 2)

Part 2 Plant and machinery allowances

Chapter 18 Additional VAT liabilities and rebates

Anti-avoidance

244 B’s qualifying expenditure if lessor not bearing non-compliance risk

An additional VAT liability is not qualifying expenditure for the purposes of this Part if—

(a) section 225 (restriction on B’s qualifying expenditure if lessor not bearing compliance risk) applies, and

(b) the additional VAT liability is incurred—

(i) by B, in respect of the expenditure referred to in section 225(2)(a), or

(ii) by the lessor, in respect of the expenditure referred to in section 225(2)(b).