SCHEDULES
SCHEDULE 21First-year allowances for expenditure wholly for a ring fence trade
Part 2Mineral extraction allowances
11Artificially inflated claims for first-year allowances
After section 416D insert—
416EArtificially inflated claims for first-year allowances
1
To the extent that a transaction is attributable to arrangements entered into wholly or mainly for a disqualifying purpose, it shall be disregarded in determining for a chargeable period the amount of any first-year allowance to which a person is entitled.
2
For the purposes of this section, arrangements are entered into wholly or mainly for a “disqualifying purpose” if their main object, or one of their main objects, is to enable a person to obtain—
a
a first-year allowance to which he would not otherwise be entitled, or
b
a first-year allowance of a greater amount than that to which he would otherwise be entitled.
3
In this section “arrangements” includes any scheme, agreement or understanding, whether or not legally enforceable.