Part 5 Mineral extraction allowances
Chapter 6 Allowances and charges
F1First-year allowances
416D First-year allowances
(1)
A person is entitled to a first-year allowance in respect of first-year qualifying expenditure if the expenditure is incurred in a chargeable period to which this Act applies.
(2)
Any first-year allowance is made for the chargeable period in which the first-year qualifying expenditure is incurred.
(3)
The amount of the allowance is a percentage of the first-year qualifying expenditure in respect of which the allowance is made, as shown in the Table—
Amount of first-year allowances
Type of first-year qualifying expenditure | Amount |
|---|---|
Expenditure qualifying under section 416B (expenditure incurred wholly for the purposes of a ring fence trade) | 100% |
(4)
A person who is entitled to a first-year allowance may claim the allowance in respect of the whole or a part of the first-year qualifying expenditure.
(5)
This section is subject to section 416E (artificially inflated claims for first-year allowances).