SCHEDULES

SCHEDULE 2Annual investment allowance: transitional provisions etc

PART 1Transitional provisions

Chargeable periods which straddle 1 January 2016

4

1

This paragraph applies in relation to a chargeable period (“the second straddling period”) which begins before 1 January 2016 and ends on or after that date.

2

The maximum allowance under section 51A of CAA 2001 for the second straddling period is the sum of each maximum allowance that would be found if—

a

the period beginning with the first day of the chargeable period and ending with 31 December 2015, and

b

the period beginning with 1 January 2016 and ending with the last day of the chargeable period,

were treated as separate chargeable periods.

3

But, so far as concerns expenditure incurred on or after 1 January 2016, the maximum allowance under section 51A of CAA 2001 for the second straddling period is the maximum allowance, calculated in accordance with sub-paragraph (2), for the period mentioned in paragraph (b) of that sub-paragraph.