399 Expenditure excluded from being qualifying expenditureU.K.
(1)Expenditure on the provision of plant or machinery is not qualifying expenditure except as provided by section 402 (pre-trading expenditure on plant or machinery).
[F1(1A)Expenditure incurred by a person for the purposes of a mineral extraction trade is not qualifying expenditure if—
(a)when the expenditure is incurred, the person is carrying on the trade but the trade is not at that time a mineral extraction trade, or
(b)the person has not begun to carry on the trade when the expenditure is incurred and, when the person begins to carry on the trade, the trade is not a mineral extraction trade.
(1B)Section 577(2) (references to commencement etc of a trade) does not apply to subsection (1A).]
(2)Expenditure on works constructed wholly or mainly for subjecting the raw product of a source to any process is not qualifying expenditure, unless the process is designed for preparing the raw product for use as such.
(3)Expenditure on buildings or structures provided for occupation by, or for the welfare of, workers is not qualifying expenditure except as provided by section 415.
(4)Expenditure on a building is not qualifying expenditure if the whole of the building was constructed for use as an office.
(5)Subsection (6) applies if part of a building or structure has been constructed for use as an office.
(6)The expenditure on the office part is not qualifying expenditure if it was more than 10% of the capital expenditure incurred on the construction of the whole.
Textual Amendments
F1S. 399(1A)(1B) inserted (with effect in accordance with s. 67(8) of the amending Act) by Finance Act 2014 (c. 26), s. 67(3)