SCHEDULES

SCHEDULE 26Special rate expenditure and the special rate pool

Part 2Commencement etc

Saving for intra-group transfers

17

(1)

Where this paragraph applies, for the purposes of making allowances and charges under Part 2 of CAA 2001—

(a)

the integral feature is treated as having been sold by the seller to the buyer at a price which gives rise to neither a balancing allowance nor a balancing charge, and

(b)

the buyer's expenditure on the integral feature is treated as qualifying expenditure which is not special rate expenditure (and, if allocated to a pool, is to be allocated to the buyer's main pool).

(2)

Allowances and charges are to be made under Part 2 of CAA 2001 to or on the buyer as if everything done to or by the seller had been done to or by the buyer.