Capital Allowances Act 2001
Capital Allowances Act 2001 (2001 c. 2)
- Capital Allowances Act 2001 (2001 c. 2)
- Part 1 Introduction
- Chapter 1 Capital allowances: general
- 1 Capital allowances
- 1A Capital allowances and charges: cash basis
- 2 General means of giving effect to capital allowances
- 3 Claims for capital allowances
- 4 Capital expenditure
- 5 When capital expenditure is incurred
- 6 Meaning of “chargeable period”
- CHAPTER 1A Trades attracting Northern Ireland rate of corporation tax
- 6A “NIRE company” and “SME (Northern Ireland employer) company”
- 6B “Northern Ireland firm” etc
- 6C “NI rate activity”
- 6D NI rate activity treated as separate trade
- 6E Giving effect to allowances and charges: NI rate activity cases
- Chapter 2 Exclusion of double relief
- 7 No double allowances
- 8 No double relief through pooling under Part 2 (plant and machinery allowances)
- 9 Interaction between fixtures claims and other claims
- 10 Interpretation
- Part 2 Plant and machinery allowances
- Chapter 1 Introduction
- 11 General conditions as to availability of plant and machinery allowances
- 12 Expenditure incurred before qualifying activity carried on
- 13 Use for qualifying activity of plant or machinery provided for other purposes
- 13A Use for other purposes of plant or machinery previously used for long funding leasing
- 13B Use for other purposes of plant or machinery: property businesses
- 14 Use for qualifying activity of plant or machinery which is a gift
- Chapter 2 Qualifying activities
- 15 Qualifying activities
- 16 Ordinary UKproperty businesses
- 17 UK furnished holiday lettings businesses
- 17A Ordinary overseas property business
- 17B EEA furnished holiday lettings businesses
- 18. Managing the investments of a company with investment business
- 19 Special leasing of plant or machinery
- 20 Employments and offices
- Chapter 3 Qualifying expenditure
- Buildings, structures and land
- 21 Buildings
- 22 Structures, assets and works
- 23 Expenditure unaffected by sections 21 and 22
- 24 Interests in land
- 25 Building alterations connected with installation of plant or machinery
- Demolition costs
- 26 Demolition costs
- Expenditure on thermal insulation and personal security
- 27 Application of Part to thermal insulation and personal security
- 28 Thermal insulation of ... buildings
- 29 Fire safety
- 30 Safety at designated sports grounds
- 31 Safety at regulated stands at sports grounds
- 32 Safety at other sports grounds
- 33 Personal security
- Expenditure on integral features
- 33A Expenditure on provision or replacement of integral features
- 33B Meaning of “replacement” in section 33A
- Exclusion of certain types of expenditure
- 34 Expenditure by MPs and others on accommodation
- 34A Expenditure on plant or machinery for long funding leasing not qualifying expenditure
- 35 Expenditure on plant or machinery for use in dwelling-house not qualifying expenditure in certain cases
- 36 Restriction on qualifying expenditure in case of employment or office
- 37 Exclusion where sums payable in respect of depreciation
- 38 Production animals etc.
- 38ZA Vehicles for which deductions allowed at fixed rate under Part 2 of ITTOIA 2005
- Chapter 3A AIA qualifying expenditure
- 38A AIA qualifying expenditure
- 38B General exclusions applying to section 38A
- Chapter 4 First-year qualifying expenditure
- General
- 39 First-year allowances available for certain types of qualifying expenditure only
- Types of expenditure which may qualify for first-year allowances
- 40 Expenditure incurred for Northern Ireland purposes by small or medium-sized enterprises
- 41 Miscellaneous exclusions from section 40 (expenditure for Northern Ireland purposes etc.)
- 42 Exclusion of plant or machinery partly for use outside Northern Ireland
- 43 Effect of plant or machinery subsequently being primarily for use outside Northern Ireland
- 44 Expenditure incurred by small or medium-sized enterprises
- 45 ICT expenditure incurred by small enterprises
- 45A Expenditure on energy-saving plant or machinery
- 45AA Section 45A exclusion: feed-in tariffs and renewable heat incentives
- 45B Certification of energy-saving plant and machinery
- 45C Energy-saving components of plant or machinery
- 45D Expenditure on cars with low carbon dioxide emissions
- 45DA Expenditure on zero-emission goods vehicles
- 45DB Exclusions from allowances under section 45DA
- 45E Expenditure on plant or machinery for gas refuelling station
- 45EA Expenditure on plant or machinery for electric vehicle charging point
- 45F Expenditure on plant and machinery for use wholly in a ring fence trade
- 45G Plant or machinery used for less than five years in a ring fence trade
- 45H Expenditure on environmentally beneficial plant or machinery
- 45I Certification of environmentally beneficial plant and machinery
- 45J Environmentally beneficial components of plant or machinery
- 45K Expenditure on plant and machinery for use in designated assisted areas
- 45L Exclusion of plant or machinery partly for use outside designated assisted areas
- 45M Exclusions from allowances under section 45K
- 45N Effect of plant or machinery subsequently being primarily for use outside designated assisted areas
- 45O Expenditure on plant and machinery for use in special tax sites
- 45P Power to amend conditions
- 45Q Exclusion of plant or machinery partly for use outside special tax sites
- 45R Effect of failing to comply with ongoing requirements
- 45S Expenditure on plant or machinery in other cases
- 45T Exclusion of expenditure incurred under disqualifying arrangements
- 45U Expenditure on plant or machinery in cases not falling with section 45S etc
- 45V Exclusion of expenditure incurred under disqualifying arrangements
- 46 General exclusions ...
- Expenditure of small or medium-sized enterprises
- 47 Expenditure of small or medium-sized enterprises: companies
- 48 Expenditure of small or medium-sized enterprises: businesses
- 49 Whether company is a member of a large or medium-sized group
- Supplementary
- 50 Time when expenditure is incurred
- 51 Disclosure of information between UK tax authorities
- Chapter 5 Allowances and charges
- Annual investment allowance
- 51A Entitlement to annual investment allowance
- 51B First restriction: companies
- 51C Second restriction: groups of companies
- 51D Third restriction: groups of companies under common control
- 51E Fourth restriction: other companies under common control
- 51F Companies and groups: meaning of “control”
- 51G Companies and groups: meaning of “related”
- 51H Fifth restriction: qualifying activities under common control
- 51I Qualifying activities: meaning of control
- 51J Qualifying activity: meaning of “related”
- 51JA Sixth restriction: allocation where profits chargeable at NI rate
- 51K Operation of annual investment allowance where restrictions apply
- 51L Special provision for short chargeable periods
- 51M Special provision for long chargeable periods
- 51N Special provision for long chargeable periods: supplementary
- First-year allowances
- 52 First-year allowances
- Prevention of double relief
- 52A Prevention of double relief
- Pooling
- 53 Pooling of qualifying expenditure
- 54 The different kinds of pools
- Writing-down and balancing allowances and balancing charges
- 55 Determination of entitlement or liability
- 56 Amount of allowances and charges
- 56A Writing-down allowances for small pools
- Available qualifying expenditure
- 57 Available qualifying expenditure
- 58 Initial allocation of qualifying expenditure to pools
- 59 Unrelieved qualifying expenditure
- Special balancing charge in cases of full expensing etc
- 59A Disposal of assets where first-year allowance made under section 45S for expenditure which is not special rate expenditure
- 59B Disposal of assets where first-year allowance made under section 45S for expenditure which is special rate expenditure
- 59C Sections 59A and 59B: tax avoidance arrangements
- Disposal events and disposal values: general
- 60 Meaning of “disposal receipt” and “disposal event”
- 61 Disposal events and disposal values
- 62 General limit on amount of disposal value
- 62A Cases in which disposal value is transition value
- 63 Cases in which disposal value is nil
- 64 Case in which no disposal value need be brought into account
- 64A Leased assets: arrangements reducing disposal value of asset
- The final chargeable period
- 65 The final chargeable period
- List of provisions outside this Chapter about disposal values
- 66 List of provisions outside this Chapter about disposal values
- Application of Chapter to person leaving cash basis
- 66A Persons leaving cash basis
- Effect of changes in Northern Ireland status of SME company or SME partnership
- 66B SME company entering NI corporation tax regime
- 66C SME partnership entering NI corporation tax regime
- 66D SME company leaving NI corporation tax regime
- 66E SME partnership leaving NI corporation tax regime
- Chapter 6 Hire-purchase etc. and plant or machinery provided by lessee
- Hire-purchase and similar contracts
- 67 Plant or machinery treated as owned by person entitled to benefit of contract, etc.
- 68 Disposal value on cessation of notional ownership
- 69 Hire-purchase etc. and fixtures
- Plant or machinery provided by lessee
- 70 Plant or machinery provided by lessee
- Lessees under long funding leases
- 70A Entitlement to capital allowances
- 70B Long funding operating lease: amount of capital expenditure
- 70C Long funding finance lease: amount of capital expenditure
- 70D Long funding finance lease: additional expenditure: allowances for lessee
- 70DA Transfer and long funding leaseback: restrictions on lessee's allowances
- 70E Disposal events and disposal values
- Chapter 6A Interpretation of provisions about long funding leases
- Introductory
- 70F Introductory
- Meaning of “long funding lease” etc
- 70G “Long funding lease”
- 70H Lessee: requirement for tax return treating lease as long funding lease
- 70I “Short lease”
- 70J “Funding lease”
- Meaning of “plant or machinery lease”
- 70K “Plant or machinery lease”
- 70L Plant or machinery leased with other assets: separate derived leases
- 70M Derived leases of plant or machinery: term and rentals
- The tests for being a funding lease
- 70N The finance lease test
- 70O The lease payments test
- 70P The useful economic life test
- Leases excluded by right of lessor etc to claim capital allowances
- 70Q Leases excluded by right of lessor etc to claim capital allowances
- Excluded leases of background plant or machinery for a building
- 70R Excluded leases of background plant or machinery for a building
- 70S The disqualifications
- 70T Orders relating to background plant or machinery for a building
- Exclusion for certain plant or machinery leased with land
- 70U Plant or machinery leased with land: low percentage value
- Avoidance
- 70V Tax avoidance involving international leasing
- Transfers, assignments, novations, leaseback, variations etc
- 70W Transfers, assignments etc by lessor
- 70X Transfers, assignments etc by lessee
- 70Y Sale and leaseback, lease and leaseback etc: lessors
- 70YA Change in accountancy classification of long funding lease
- 70YB Long funding operating lease: extension of term of lease
- 70YC Extension of term of lease that is not a long funding lease
- 70YD Increase in proportion of residual amount guaranteed: review of status
- Interpretation
- 70YE “Minimum lease payments”
- 70YF The “term” of a lease
- 70YG “Termination amount”
- 70YH “Termination value”
- 70YI General definitions
- 70YJ Power to vary the meaning of certain expressions
- Chapter 7 Computer software
- 71 Software and rights to software
- 72 Disposal values
- 73 Limit on disposal values
- Chapter 8 Cars, etc.
- Cars above the cost threshold
- 74 Single asset pool
- 75 General limit on amount of writing-down allowance
- 76 Limit where part of expenditure met by another person
- 77 Car used partly for purposes other than those of qualifying activity
- 78 Effect of partial depreciation subsidy
- 79 Cases where Chapter 17 (anti-avoidance) applies
- Vehicles provided for purposes of employment or office
- 80 Vehicles provided for purposes of employment or office
- Interpretation
- 81 Extended meaning of “car”
- 82 Qualifying hire cars
- Chapter 9 Short-life assets
- 83 Meaning of “short-life asset”
- 84 Cases in which short-life asset treatment is ruled out
- 85 Election for short-life asset treatment: procedure
- 86 Short-life asset pool
- 87 Short-life assets provided for leasing
- 88 Sales at under-value
- 89 Disposal to connected person
- Chapter 10 Long-life assets
- Long-life asset expenditure
- 90 Long-life asset expenditure
- 91 Meaning of “long-life asset”
- 92 Application of Chapter to part of expenditure
- Expenditure excluded from being long-life asset expenditure
- 93 Fixtures etc.
- 94 Ships
- 95 Railway assets
- 96 Cars
- 97 Expenditure within the relevant monetary limit: general
- 98 Expenditure to which the monetary limits apply
- 99 The monetary limit
- 100 Exceeding the monetary limit
- Rules applying to long-life asset expenditure
- 101 Allocation of long-life asset expenditure to pool
- 102 Writing-down allowance in respect of long-life asset expenditure
- Anti-avoidance provisions
- 103 Later claims
- 104 Disposal value of long-life assets
- Chapter 10A Special rate expenditure
- Special rate expenditure
- 104A Special rate expenditure
- 104AA Meaning of “main rate car”
- 104B Application of Chapter to part of expenditure
- Rules applying to special rate expenditure
- 104C Special rate pool
- 104D Writing-down allowances at 6% or 10%
- 104E Disposal value of special rate assets
- 104F Special rate cars: discontinued activity continued by relevant company
- 104G Disposal events in respect of cushion gas
- Chapter 11 Overseas leasing
- Basic terms
- 105 “Leasing”, “overseas leasing” etc.
- 106 The designated period
- Certain expenditure to be pooled
- 107 The overseas leasing pool
- 108 Effect of disposal to connected person on overseas leasing pool
- Allowances reduced or, in certain cases, prohibited
- 109 Writing-down allowances at 10%
- 110 Cases where allowances are prohibited
- Recovery of excess allowances
- 111 Excess allowances: standard recovery mechanism
- 112 Excess allowances: connected persons
- 113 Excess allowances: special provision for ships
- Recovery of allowances given in cases where prohibition applies
- 114 Prohibited allowances: standard recovery mechanism
- 115 Prohibited allowances: connected persons
- Application of Chapter in relation to joint lessees
- 116 Mitigation of regime
- 117 Recovery of allowances in case of joint lessees
- Duties to supply information
- 118 Certificate relating to protected leasing
- 119 Notice of change of use of plant or machinery
- 120 Notice and joint lessees
- Qualifying purposes
- 121 Meaning of “short-term leasing”
- 122 Short-term leasing by buyer, lessee, etc.
- 123 Ships and aircraft
- 124 Transport containers
- 125 Other qualifying purposes
- Minor definitions
- 126 Minor definitions
- Chapter 12 Ships
- Pooling and postponement of allowances
- 127 Single ship pool
- 128 Expenditure which is not to be allocated to single ship pool
- 129 Election to use the appropriate non-ship pool
- 130 Notice postponing first-year or writing-down allowance
- 131 Effect of postponement
- 132 Disposal events and single ship pool
- 133 Ship not used
- Deferment of balancing charges
- 134 Deferment of balancing charges: introduction
- 135 Claim for deferment
- 136 Further conditions for deferment
- 137 Effect of deferment
- 138 Limit on amount deferred
- 139 Amount taken into account in respect of old ship
- Attribution of deferred amounts
- 140 Notice attributing deferred amounts to new expenditure
- 141 Deferred amounts attributed to earlier expenditure first
- 142 Variation of attribution
- 143 Effect of attribution
- 144 Amounts which cease to be attributable
- 145 Requirement to notify where no entitlement to defer amounts
- Expenditure on new shipping
- 146 Basic meaning of expenditure on new shipping
- 147 Exclusions: ship previously owned
- 148 Exclusions: object to secure deferment
- 149 Exclusions: later events
- 150 Exclusions where expenditure not incurred by shipowner
- Qualifying ships
- 151 Basic meaning of qualifying ship
- 152 Ships under 100 tons
- 153 Ships which are not qualifying ships
- 154 Further registration requirement
- Deferment of balancing charges: supplementary provisions
- 155 Change in the persons carrying on the qualifying activity
- 156 Connected persons
- Further provisions
- 157 Adjustment of assessments etc.
- 158 Members of same group
- Chapter 13 Provisions affecting mining and oil industries
- Expenditure connected with mineral extraction trades
- 159 Meaning of “mineral extraction trade” etc.
- 160 Expenditure treated as incurred for purposes of mineral extraction trade
- 161 Pre-trading expenditure on mineral exploration and access
- Expenditure connected with reuse etc. of offshore oil infrastructure
- 161A Meaning of “offshore infrastructure”
- 161B Meaning of “decommissioning expenditure”
- 161C Expenditure related to reuse etc. qualifies for writing-down allowances
- 161D Exceptions to section 161C(2)
- Provisions relating to ring fence trades
- 162 Ring fence trade a separate qualifying activity
- 163 Meaning of “general decommissioning expenditure”
- 163A Expenditure in anticipation of approval of abandonment programme
- 164 General decommissioning expenditure incurred before cessation of ring fence trade
- 165 General decommissioning expenditureafter ceasing ring fence trade
- Restrictions on allowances: anti-avoidance
- 165A Decommissioning services supplied by connected person
- 165B Restriction on allowance available
- 165C Allowance in respect of certain services related to decommissioning
- 165D Allowance where decommissioning undertaken for other participators in oil field
- 165E Transaction to obtain tax advantage
- Transfers of interests in oil fields: anti-avoidance
- 166 Transfers of interests in oil fields: anti-avoidance
- Oil production sharing contracts
- 167 Oil production sharing contracts
- 168 Expenditure on plant or machinery incurred by contractor
- 169 Expenditure on plant or machinery incurred by participator
- 170 Participator’s expenditure attributable to plant or machinery
- 171 Disposal values on cessation of ownership
- Chapter 14 Fixtures
- Introduction
- 172 Scope of Chapter etc.
- 172A Long funding leases etc: cases where this Chapter does not apply.
- 173 Meaning of “fixture” and “relevant land”
- 174 Meaning of “equipment lease” and “lease”
- 175 Meaning of “interest in land”, etc.
- 175A Meaning of “energy services agreement”
- Persons who are treated as owners of fixtures
- 176 Person with interest in relevant land having fixture for purposes of qualifying activity
- 177 Equipment lessors
- 178 Equipment lessee has qualifying activity etc.
- 179 Equipment lessor has right to sever fixture that is not part of building
- 180 Equipment lease is part of affordable warmth programme
- 180A Energy services providers
- 181 Purchaser of land giving consideration for fixture
- 182 Purchaser of land discharging obligations of equipment lessee
- 182A Purchaser of land discharging obligations of client under energy services agreement
- 183 Incoming lessee where lessor entitled to allowances
- 184 Incoming lessee where lessor not entitled to allowances
- Restrictions on amount of qualifying expenditure
- 185 Fixture on which a plant and machinery allowance has been claimed
- 186 Fixture on which an industrial buildings allowance has been made
- 186A Fixtures on which a business premises renovation allowance has been made
- 187 Fixture on which a research and development allowance has been made
- 187A Effect of changes in ownership of a fixture
- 187B Section 187A: supplementary provision
- Cessation of ownership of fixtures
- 188 Cessation of ownership when person ceases to have qualifying interest
- 189 Identifying the qualifying interest in special cases
- 190 Cessation of ownership of lessor where section 183 applies
- 191 Cessation of ownership on severance of fixture
- 192 Cessation of ownership of equipment lessor
- 192A Cessation of ownership of energy services provider
- Acquisition of ownership of fixture when another ceases to own it
- 193 Acquisition of ownership by lessor or licensor on termination of lease or licence
- 194 Acquisition of ownership by assignee of equipment lessor
- 195 Acquisition of ownership by equipment lessee
- 195A Acquisition of ownership by assignee of energy services provider
- 195B Acquisition of ownership by client
- Disposal values
- 196 Disposal values in relation to fixtures: general
- 197 Disposal values in avoidance cases
- Election to fix apportionment
- 198 Election to apportion sale price on sale of qualifying interest
- 199 Election to apportion capital sum given by lessee on grant of lease
- 200 Elections under sections 198 and 199: supplementary
- 201 Elections under sections 198 and 199: procedure
- Further provisions
- 202 Interpretation
- 203 Amendment of returns etc.
- 204 Appeals etc.
- Chapter 15 Asset provided or used only partly for qualifying activity
- 205 Reduction of annual investment allowance and first-year allowances
- 206 Single asset pool etc.
- 207 Reduction of allowances and charges on expenditure in single asset pool
- 208 Effect of significant reduction in use for purposes of qualifying activity
- 208A Cars: disposal value in avoidance cases
- Chapter 16 Partial depreciation subsidies
- 209 Meaning of “partial depreciation subsidy”
- 210 Reduction of annual investment allowance and first-year allowances
- 211 Single asset pool etc.
- 212 Reduction of allowances and charges on expenditure in single asset pool
- CHAPTER 16ZA Asset provided or used only partly for NI rate activity
- 212ZA Apportionment of expenditure incurred partly for NI rate activity
- 212ZB Single asset pool etc
- 212ZC Allowances and charges on expenditure in single asset pool
- 212ZD Effect of significant change in balance of use
- 212ZE Application of Chapter to partnerships
- 212ZF “Main rate activity”
- Chapter 16A Restrictions on allowance buying
- Introduction
- 212A Scope of Chapter
- 212B Where Chapter applies
- Qualifying change
- 212C When there is qualifying change in relation to C
- 212D Guide to sections explaining section 212C
- 212E Principal companies
- 212F When company is owned by consortium and consortium members
- 212G Qualifying 75% subsidiaries
- 212H Ownership proportion
- 212I Relevant percentage share
- Relevant excess of allowances
- 212J Relevant excess of allowances
- 212K Relevant tax written-down value
- 212L Balance sheet value
- Limiting conditions
- 212LA Limiting conditions
- Unallowable purpose
- 212M Unallowable purpose
- What happens when Chapter applies
- 212N Old and new accounting periods
- 212O When there is excess of allowances in pool: amount of excess
- 212P Effect of excess of allowances on pools
- 212Q When there are postponed capital allowances
- 212R Apportionment of proceeds of disposal of relevant plant and machinery
- 212S Transactions on relevant day
- CHAPTER 16B Cap on first-year allowances...
- 212T Cap on first-year allowances: zero-emission goods vehicles
- 212U Cap on first-year allowances: expenditure on plant and machinery for use in designated assisted areas
- Chapter 17 Other anti-avoidance
- Relevant transactions
- 213 Relevant transactions: sale, hire-purchase (etc.) and assignment
- Restrictions on allowances
- 214 Connected persons
- 215 Transactions to obtain tax advantages
- 216 Sale and leaseback, etc.
- 217 No annual investment allowance or first-year allowance for B’s expenditure
- 218 Restriction on B’s qualifying expenditure: section 214 or 216
- 218ZA Restrictions on writing-down allowances: section 215
- 218ZB Disposal values: section 215
- 218A Further restriction on annual investment allowance
- Finance leases and certain operating leases
- 219 Meaning of “finance lease”
- 220 Allocation of expenditure to a chargeable period
- Sale and finance leasebacks
- 221 Meaning of “sale and finance leaseback”
- 222 Disposal value restricted
- 223 No first-year allowance for B’s expenditure
- 224 Restriction on B’s qualifying expenditure
- 225 B’s qualifying expenditure if lessor not bearing non-compliance risk
- 226 Qualifying expenditure limited in subsequent transactions
- Sale and leaseback: election for special treatment
- 227 Sale and leaseback: election for special treatment
- 228 Effect of election: relaxation of restriction on B’s qualifying expenditure, etc.
- Finance leaseback: parties' income and profits
- 228A Application of sections 228B and 228C
- 228B S's income or profits etc: deductions
- 228C S's income or profits: termination of leaseback
- 228D Lessor’s income or profits
- 228E Lessor’s income or profits: termination of leaseback
- 228F Lease and finance leaseback
- 228G Leaseback not accounted for as finance lease in S's accounts
- 228H Sections 228A to 228G: supplementary
- 228J Plant or machinery subject to further operating lease
- Disposal of plant or machinery subject to lease where income retained
- 228K Disposal of plant or machinery subject to lease where income retained
- 228L Determining the net present value of the rentals for purposes of s.228K
- 228M Other definitions for the purposes of s.228K
- 228MA Restriction of qualifying expenditure
- 228MB Calculation of present value
- 228MC Rental rebate
- Miscellaneous and supplementary
- 229 Hire-purchase etc.
- 229A Transfer followed by hire-purchase etc: restrictions on hirer's allowances
- 230 Exception for manufacturers and suppliers
- 231 Adjustments of assessments etc.
- 232 Meaning of connected person
- 233 Additional VAT liabilities and rebates
- Chapter 18 Additional VAT liabilities and rebates
- Introduction
- 234 Introduction
- Additional VAT liability
- 235 Additional VAT liability treated as qualifying expenditure
- 236 Additional VAT liability generates first-year allowance or annual investment allowance
- 237 Exceptions to section 236
- Additional VAT rebate
- 238 Additional VAT rebate generates disposal value
- 239 Limit on disposal value where additional VAT rebate
- Short-life assets: balancing allowance
- 240 Additional VAT liability
- Anti-avoidance
- 241 No annual investment allowance or first-year allowance in respect of additional VAT liability
- 242 Restriction on B’s qualifying expenditure: general
- 243 Restriction on B’s qualifying expenditure: sale and finance leaseback
- 244 B’s qualifying expenditure if lessor not bearing non-compliance risk
- 245 Effect of election under section 227 on additional VAT liability
- 246 Miscellaneous
- Chapter 19 Giving effect to allowances and charges
- Trades
- 247 Trades
- Property businesses
- 248 ...UKproperty businesses
- 249 UK furnished holiday lettings businesses
- 250 ... Overseas property businesses
- 250A EEA furnished holiday lettings businesses
- Activities analogous to trades
- 251 Professions and vocations
- 252 Mines, transport undertakings etc.
- Companies with investment business
- 253 Companies with investment business
- Long-term business
- 254 Introductory
- 255 Apportionment of allowances and charges
- 256 Different giving effect rules for BLAGAB
- 257 Supplementary
- Special leasing of plant or machinery
- 258 Special leasing: income tax
- 259 Special leasing: corporation tax (general)
- 260 Special leasing: corporation tax (excess allowance)
- 261 Special leasing: long-term business
- 261A Special leasing: leasing partnerships
- Employments and offices
- 262 Employments and offices
- First-year tax credits
- 262A First-year tax credits
- Chapter 20 Supplementary provisions
- Co-ownership ... contractual schemes
- 262AA Co-ownership schemes: carrying on qualifying activity
- 262AB Co-ownership schemes: election
- 262AC Co-ownership schemes: calculation of allowance after election
- 262AD Co-ownership schemes: effect of election for participants
- 262AE Co-ownership schemes: effect of election for purchasers
- 262AEA Co-ownership authorised contractual schemes: withdrawal of election
- 262AF Co-ownership schemes: definitions relating to schemes
- Partnerships and successions
- 263 Qualifying activities carried on in partnership
- 264 Partnership using property of a partner
- 265 Successions: general
- 266 Election where predecessor and successor are connected persons
- 267 Effect of election
- 267A Restriction on effect of election
- 268 Successions by beneficiaries
- Cars etc
- 268A Meaning of “car” and “motor cycle”
- 268B Electrically-propelled vehicles
- 268C Terms relating to emissions
- 268D Hire cars for disabled persons
- 268E Meaning of “assigns”
- Miscellaneous
- 269 Use of plant or machinery for business entertainment
- 270 Shares in plant or machinery
- PART 2A STRUCTURES AND BUILDINGS ALLOWANCES
- CHAPTER 1 INTRODUCTION
- 270AA Structures and buildings allowances
- 270AB Date on which construction begins
- CHAPTER 2 QUALIFYING EXPENDITURE
- Meaning of “qualifying expenditure”
- 270BA Meaning of “qualifying expenditure”
- Qualifying expenditure incurred on construction
- 270BB Capital expenditure incurred on construction
- Qualifying expenditure incurred on purchase
- 270BC Sale of unused buildings or structures (other than by a developer)
- 270BD Sale by a developer: unused buildings or structures
- 270BE Sale by a developer: used buildings or structures
- 270BF Meaning of references to carrying on trade as a developer
- Excluded expenditure
- 270BG Acquisition or alteration of land etc
- 270BH Market value rule
- 270BI Provision of plant or machinery
- Expenditure treated as expenditure on construction
- 270BJ Expenditure on renovation, conversion or incidental repairs
- 270BK Preparation of sites
- Supplementary provision about expenditure
- 270BL Apportionment of sums partly referable to non-qualifying assets
- 270BM Evidence of the amount of expenditure
- 270BN Expenditure incurred before qualifying activity carried on
- CHAPTER 2A special tax site qualifying expenditure
- 270BNA Meaning of “special tax site qualifying expenditure”
- 270BNB Apportionment
- 270BNC Power to amend meaning of “special tax site qualifying expenditure” etc
- CHAPTER 3 QUALIFYING USE AND QUALIFYING ACTIVITIES
- Qualifying activities
- 270CA Qualifying activities
- 270CB Property businesses
- 270CC Foreign permanent establishments
- 270CD Companies with investment business
- Qualifying use
- 270CE Qualifying use
- 270CF Exclusion: residential use
- 270CG Use for the purposes of a property business
- CHAPTER 4 THE RELEVANT INTEREST IN THE BUILDING OR STRUCTURE
- 270DA General rule as to what is the relevant interest
- 270DB Interest acquired on completion of construction
- 270DC Effect of creation of subordinate interest
- 270DD Leases granted for 35 years or more
- 270DE Merger of leasehold interest
- CHAPTER 5 CALCULATING THE ALLOWANCE: SUPPLEMENTARY PROVISION
- 270EA Proportionate adjustment in certain cases
- 270EB Multiple uses
- 270EC Research and development
- CHAPTER 6 HIGHWAY UNDERTAKINGS
- 270FA Carrying on of highway undertakings
- 270FB The relevant interest
- 270FC Cases where highway concession is to be treated as extended
- CHAPTER 7 ADDITIONAL VAT LIABILITIES AND REBATES
- Introduction
- 270GA Introduction
- Additional VAT liabilities
- 270GB Additional VAT liabilities
- Additional VAT rebates
- 270GC Additional VAT rebates
- CHAPTER 7A Adjustment for pre-April 2020 allowance
- 270GD Adjustment for pre-April 2020 allowance
- CHAPTER 8 GIVING EFFECT TO ALLOWANCES
- Trades
- 270HA Trades
- Property businesses
- 270HB ... UK property businesses and ... overseas property businesses
- Activities analogous to trades
- 270HC Professions and vocations
- 270HD Mines, transport undertakings etc
- Companies with investment business
- 270HE Companies with investment business
- Long-term business
- 270HF Application of sections 270HG and 270HH
- 270HG Apportionment of allowances
- 270HH Different giving effect rules for BLAGAB
- 270HI Supplementary
- CHAPTER 9 SUPPLEMENTARY PROVISIONS
- Evidence of qualifying expenditure etc
- 270IA Evidence of qualifying expenditure etc
- Anti-avoidance
- 270IB Anti-avoidance: general
- Co-ownership ... contractual schemes
- 270IC Co-ownership schemes: carrying on qualifying activity
- 270ID Co-ownership schemes: election
- 270IE Co-ownership schemes: calculation of allowance after an election
- 270IF Co-ownership schemes: definitions relating to schemes
- Leases
- 270IG Treatment of leases
- 270IH Meaning of “lease” etc
- Part 3 Industrial buildings allowances
- Chapter 1 Introduction
- 271 Industrial buildings allowances
- 272 Expenditure on the construction of a building
- 273 Preparation of sites for plant or machinery
- Chapter 2 Industrial buildings
- Buildings in use for the purposes of a qualifying trade
- 274 Trades and undertakings which are “qualifying trades”
- 275 Building used for welfare of workers
- 276 Parts of trades and undertakings
- 277 Exclusion of dwelling-houses, retail shops, showrooms, hotels and offices etc.
- 278 Building used by more than one licensee
- Qualifying hotels and sports pavilions
- 279 Qualifying hotels
- 280 Qualifying sports pavilions
- Commercial buildings (enterprise zones)
- 281 Commercial buildings (enterprise zones)
- Supplementary provisions
- 282 Buildings outside the United Kingdom
- 283 Non-industrial part of building disregarded
- 284 Roads on industrial estates etc.
- 285 Cessation of use and temporary disuse of building
- Chapter 3 The relevant interest in the building
- 286 General rule as to what is the relevant interest
- 287 Interest acquired on completion of construction
- 288 Effect of creation of subordinate interest
- 289 Merger of leasehold interest
- 290 Election to treat grant of lease exceeding 50 years as sale
- 291 Supplementary provisions with respect to elections
- Chapter 4 Qualifying expenditure
- Introduction
- 292 Meaning of “qualifying expenditure”
- 293 Meaning of references to carrying on a trade as a developer
- Qualifying expenditure
- 294 Capital expenditure on construction of a building
- 295 Purchase of unused building where developer not involved
- 296 Purchase of building which has been sold unused by developer
- 297 Purchase of used building from developer
- Qualifying enterprise zone expenditure
- 298 The time limit for qualifying enterprise zone expenditure
- 299 Application of section 294
- 300 Application of sections 295 and 296
- 301 Purchase of building within 2 years of first use
- Part of expenditure within time limit for qualifying enterprise zone expenditure
- 302 Qualifying enterprise zone expenditure where section 295 or 296 applies
- 303 Purchase of building within 2 years of first use
- 304 Application of section 303 where developer involved
- Chapter 5 Initial allowances
- 305 Initial allowances for qualifying enterprise zone expenditure
- 306 Amount of initial allowance and period for which allowance made
- 307 Building not industrial building when first used etc.
- 308 Grants affecting entitlement to initial allowances
- Chapter 6 Writing-down allowances
- 309 Entitlement to writing-down allowance
- 310 Basic rule for calculating amount of allowance
- 311 Calculation of allowance after sale of relevant interest
- 312 Allowance limited to residue of qualifying expenditure
- 313 Meaning of “the residue of qualifying expenditure”
- 313A Calculation of allowance after sale of relevant interest: anti-avoidance
- Chapter 7 Balancing adjustments
- General
- 314 When balancing adjustments are made
- 315 Main balancing events
- 316 Proceeds from main balancing events
- 317 Balancing event where hotel not qualifying hotel for 2 years
- Calculation of balancing adjustments
- 318 Building an industrial building etc. throughout
- 319 Building not an industrial building etc. throughout
- 320 Overall limit on balancing charge
- Meaning of “the relevant period of ownership” etc.
- 321 The relevant period of ownership
- 322 Starting expenditure
- 323 Adjusted net cost
- 324 Net allowances
- Balancing allowances restricted where sale subject to subordinate interest
- 325 Balancing allowances restricted where sale subject to subordinate interest
- 326 Interpretation of section 325
- Qualifying enterprise zone expenditure: effect of realising capital value
- 327 Capital value provisions: application of provisions
- 328 Balancing adjustment on realisation of capital value
- 329 Capital value that is attributable to subordinate interest
- 330 Exception for payments more than 7 years after agreement
- 331 Capital value provisions: interpretation
- Chapter 8 Writing off qualifying expenditure
- 332 Introduction
- 333 Writing off initial allowances
- 334 Writing off writing-down allowances
- 335 Writing off research and development allowances
- 336 Writing off expenditure when building not an industrial building
- 337 Writing off or increase of expenditure where balancing adjustment made
- 338 Writing off capital value which has been realised
- 339 Crown or other person not within the charge to tax entitled to the relevant interest
- 340 Treatment of demolition costs
- Chapter 9 Highway undertakings
- 341 Carrying on of highway undertakings
- 342 The relevant interest
- 343 Balancing adjustment on ending of concession
- 344 Cases where highway concession is to be treated as extended
- Chapter 10 Additional VAT liabilities and rebates
- Introduction
- 345 Introduction
- Additional VAT liabilities
- 346 Additional VAT liabilities and initial allowances
- 347 Additional VAT liabilities and writing-down allowances
- 348 Additional VAT liabilities and writing off initial allowances
- Additional VAT rebates
- 349 Additional VAT rebates and writing-down allowances
- 350 Additional VAT rebates and balancing adjustments
- 351 Additional VAT rebates and writing off qualifying expenditure
- Chapter 11 Giving effect to allowances and charges
- 352 Trades
- 353 Lessors and licensors
- 354 Buildings temporarily out of use
- 355 Buildings for miners etc.: carry-back of balancing allowances
- Chapter 12 Supplementary provisions
- 356 Apportionment of sums partly referable to non-qualifying assets
- 357 Arrangements having an artificial effect on pricing
- 358 Requisitioned land
- 359 Provisions applying on termination of lease
- 360 Meaning of “lease” etc.
- Part 3A Business Premises Renovation Allowances
- Chapter 1 INTRODUCTION
- 360A Business premises renovation allowances
- Chapter 2 QUALIFYING EXPENDITURE
- 360B Meaning of “qualifying expenditure”
- 360BA Expenditure not treated as qualifying expenditure if delay in carrying out works etc
- Chapter 3 QUALIFYING BUILDINGS AND QUALIFYING BUSINESS PREMISES
- 360C Meaning of “qualifying building”
- 360D Meaning of “qualifying business premises”
- Chapter 4 THE RELEVANT INTEREST IN THE QUALIFYING BUILDING
- 360E General rule as to what is the relevant interest
- 360F Interest acquired on completion of conversion
- Chapter 5 INITIAL ALLOWANCES
- 360G Initial allowances
- 360H Premises not qualifying business premises or relevant interest sold before premises first used or let
- Chapter 6 WRITING-DOWN ALLOWANCES
- 360I Entitlement to writing-down allowances
- 360J Amount of allowance
- 360K Meaning of “ the residue of qualifying expenditure ”
- Chapter 7 GRANTS IN RESPECT OF QUALIFYING EXPENDITURE
- 360L Grants affecting entitlement to allowances
- Chapter 8 BALANCING ADJUSTMENTS
- 360M When balancing adjustments are made
- 360N Balancing events
- 360O Proceeds from balancing events
- 360P Calculation of balancing adjustments
- Chapter 9 WRITING OFF QUALIFYING EXPENDITURE
- 360Q Introduction
- 360R Writing off initial allowances and writing-down allowances
- 360S Treatment of demolition costs
- Chapter 10 ADDITIONAL VAT LIABILITIES AND REBATES
- 360T Introduction
- 360U Additional VAT liabilities and initial allowances
- 360V Additional VAT liabilities and writing-down allowances
- 360W Additional VAT liabilities and writing off initial allowances
- 360X Additional VAT rebates and balancing adjustments
- 360Y Additional VAT rebates and writing off qualifying expenditure
- Chapter 11 SUPPLEMENTARY PROVISIONS
- 360Z Giving effect to allowances and charges: trades
- 360Z1 Giving effect to allowances and charges: lessors and licensees
- 360Z2 Apportionment of sums partly referable to non-qualifying assets
- 360Z3 Provisions applying on termination of lease
- 360Z4 Meaning of “lease” etc.
- Part 4 Agricultural buildings allowances
- Chapter 1 Introduction
- 361 Agricultural buildings allowances
- 362 Meaning of “husbandry”
- 363 Expenditure on the construction of a building
- Chapter 2 The relevant interest
- 364 General rule as to what is the relevant interest
- 365 Effect of creation of subordinate lease
- 366 Interest conveyed or assigned by way of security
- 367 Merger of leasehold interest
- 368 Provisions applying on ending of lease
- Chapter 3 Qualifying expenditure
- 369 Capital expenditure on construction of agricultural building
- 370 Purchase of relevant interest before first use of agricultural building
- 371 Different relevant interests in different parts of the related agricultural land
- Chapter 4 Writing-down allowances
- 372 Entitlement to writing-down allowance
- 373 Basic rule for calculating amount of allowance
- 374 First use of building not for purposes of husbandry, etc.
- 375 Effect of acquisition of relevant interest after first use of building
- 376 Calculation of allowance after acquisition
- 377 Chargeable period when balancing adjustment made
- 378 Allowance limited to residue of qualifying expenditure
- 379 Final writing-down allowance
- Chapter 5 Balancing adjustments
- General
- 380 When balancing adjustments are made
- 381 Balancing events (on making an election)
- 382 Requirements as to elections
- 383 Proceeds from balancing events
- 384 Exclusion of proportion of proceeds
- Calculation of balancing adjustments
- 385 Calculation of balancing adjustment
- 386 The residue of qualifying expenditure
- 387 Overall limit on balancing charge
- 388 Acquisition of relevant interest in part of land, etc.
- 389 Balancing allowances restricted where sale subject to subordinate interest etc.
- 390 Interpretation of section 389
- Chapter 6 Supplementary provisions
- Giving effect to allowances and charges
- 391 Trades
- 392 UK property businesses
- Meaning of “freehold interest”, “lease” etc.
- 393 Meaning of “freehold interest”, “lease”, etc.
- Part 4A FLAT CONVERSION ALLOWANCES
- Chapter 1 INTRODUCTION
- 393A Flat conversion allowances
- Chapter 2 QUALIFYING EXPENDITURE
- 393B Meaning of “qualifying expenditure”
- Chapter 3 QUALIFYING BUILDINGS AND QUALIFYING FLATS
- 393C Meaning of “qualifying building”
- 393D Meaning of “qualifying flat”
- 393E High value flats
- Chapter 4 THE RELEVANT INTEREST IN THE FLAT
- 393F General rule as to what is the relevant interest
- 393G Interest acquired on completion of conversion
- Chapter 5 INITIAL ALLOWANCES
- 393H Initial allowances
- 393I Flat not qualifying flat or relevant interest sold before flat first let
- Chapter 6 WRITING-DOWN ALLOWANCES
- 393J Entitlement to writing-down allowances
- 393K Amount of allowance
- 393L Meaning of “the residue of qualifying expenditure”
- Chapter 7 BALANCING ADJUSTMENTS
- 393M When balancing adjustments are made
- 393N Balancing events
- 393O Proceeds from balancing events
- 393P Calculation of balancing adjustments
- Chapter 8 WRITING OFF QUALIFYING EXPENDITURE
- 393Q Introduction
- 393R Writing off initial allowances and writing-down allowances
- 393S Treatment of demolition costs
- Chapter 9 SUPPLEMENTARY PROVISIONS
- 393T Giving effect to allowances and charges
- 393U Apportionment of sums partly referable to non-qualifying assets
- 393V Provisions applying on termination of lease
- 393W Meaning of “lease” etc.
- Part 5 Mineral extraction allowances
- Chapter 1 Introduction
- 394 Mineral extraction allowances
- 395 Qualifying expenditure
- 396 Meaning of “mineral exploration and access”
- 397 Meaning of “mineral asset”
- 398 Relationship between main types of qualifying expenditure
- 399 Expenditure excluded from being qualifying expenditure
- Chapter 2 Qualifying expenditure on mineral exploration and access
- 400 Qualifying expenditure on mineral exploration and access
- 401 Pre-trading exploration expenditure
- 402 Pre-trading expenditure on plant or machinery
- Chapter 3 Qualifying expenditure on acquiring a mineral asset
- 403 Qualifying expenditure on acquiring a mineral asset
- 404 Exclusion of undeveloped market value of land
- 405 Qualifying expenditure where buildings or structures cease to be used
- 406 Reduction where premium relief previously allowed
- Chapter 4 Qualifying expenditure: second-hand assets
- Assets reflecting expenditure on mineral exploration and access
- 407 Acquisition of mineral asset owned by previous trader
- 408 Acquisition of oil licence from non-trader
- 409 Acquisition of other assets from non-traders
- Qualifying expenditure on assets limited by reference to historic costs
- 410 UK oil licence: limit is original licence payment
- 411 Assets generally: limit is residue of previous trader’s qualifying expenditure
- 412 Transfers of mineral assets within group: limit is initial group expenditure
- 413 Transfers of mineral assets within group: supplementary
- Chapter 5 Other kinds of qualifying expenditure
- 414 Expenditure on works likely to become valueless
- 415 Contribution to buildings or works for benefit of employees abroad
- 416 Non-ring fence trades: expenditure on restoration within 3 years of ceasing to trade
- 416ZA Ring fence trades: expenditure on site restoration
- 416ZB “Notional accounting period”
- 416ZC Site restoration services supplied by connected person
- 416ZD Restriction on allowance available
- 416ZE Allowance where site restoration undertaken for other participators in oil field
- Chapter 5A First-year qualifying expenditure
- General
- 416A First-year allowances available for certain types of qualifying expenditure
- Types of expenditure which may qualify for first year allowances
- 416B Expenditure incurred by company for purposes of a ring fence trade
- Supplementary
- 416C Time when expenditure is incurred
- Chapter 6 Allowances and charges
- First-year allowances
- 416D First-year allowances
- 416E Artificially inflated claims for first-year allowances
- Writing-down and balancing allowances and balancing charges
- 417 Determination of entitlement or liability
- 418 Amount of allowances and charges
- Unrelieved qualifying expenditure
- 419 Unrelieved qualifying expenditure
- 419A Unrelieved qualifying expenditure: entry to cash basis
- Disposal values
- 420 Meaning of “disposal receipt”
- 421 Disposal of, or ceasing to use, asset
- 422 Use of asset otherwise than for permitted development etc.
- 423 Sections 421 and 422: amount of disposal value to be brought into account
- 424 Disposal value restricted in case of interest in land
- 425 Receipt of capital sum
- Cases in which a person is entitled to a balancing allowance
- 426 Pre-trading expenditure
- 427 Giving up exploration, search or inquiry
- 428 Ceasing to work mineral deposits
- 429 Buildings etc. for benefit of employees abroad ceasing to be used
- 430 Disposal of asset, etc.
- 431 Discontinuance of trade
- 431A Foreign permanent establishment exemption
- 431B Disposal value: no allowance/no charge cases
- 431C Notional allowances
- 431D Persons leaving cash basis
- Chapter 7 Supplementary provisions
- 432 Giving effect to allowances and charges
- 433 Treatment of demolition costs
- 434 Time when expenditure incurred
- 435 Shares in assets
- 436 Meaning of “development” etc.
- Part 6 Research and development allowances
- Chapter 1 Introduction
- 437 Research and development allowances
- 438 Expenditure on research and development
- Chapter 2 Qualifying expenditure
- 439 Qualifying expenditure
- 439A Qualifying expenditure incurred for purposes of NI rate activity
- 440 Excluded expenditure: land
- Chapter 3 Allowances and charges
- 441 Allowances
- 442 Balancing charges
- 443 Disposal values and disposal events
- 444 Disposal events: chargeable period for which disposal value is to be brought into account
- 445 Costs of demolition
- Chapter 4 Additional VAT liabilities and rebates
- 446 Introduction
- 447 Additional VAT liability treated as additional expenditure etc.
- 448 Additional VAT rebate generates disposal value
- 449 Effect on balancing charges of additional VAT rebates in earlier chargeable periods
- Chapter 5 Supplementary provisions
- 450 Giving effect to allowances and charges
- 451 Sales: time of cessation of ownership
- Part 7 Know-how allowances
- Chapter 1 Introduction
- 452 Know-how allowances
- 453 Know-how as property
- Chapter 2 Qualifying expenditure
- 454 Qualifying expenditure
- 455 Excluded expenditure
- Chapter 3 Allowances and charges
- 456 Pooling of expenditure
- 457 Determination of entitlement or liability
- 458 Amount of allowances and charges
- 459 Available qualifying expenditure
- 460 Allocation of qualifying expenditure to pools
- 461 Unrelieved qualifying expenditure
- 461A Unrelieved qualifying expenditure: entry to cash basis
- 462 Disposal values
- 462A Persons leaving cash basis
- 463 Giving effect to allowances and charges
- Part 8 Patent allowances
- Chapter 1 Introduction
- 464 Patent allowances
- 465 Future patent rights
- 466 Grant of licences
- Chapter 2 Qualifying expenditure
- 467 Qualifying expenditure
- 468 Qualifying trade expenditure
- 469 Qualifying non-trade expenditure
- Chapter 3 Allowances and charges
- 470 Pooling of expenditure
- 471 Determination of entitlement or liability
- 472 Amount of allowances and charges
- 473 Available qualifying expenditure
- 474 Allocation of qualifying expenditure to pools
- 475 Unrelieved qualifying expenditure
- 475A Unrelieved qualifying expenditure: entry to cash basis
- 476 Disposal value of patent rights
- 477 Limit on amount of disposal value
- 477A Persons leaving cash basis
- Chapter 4 Giving effect to allowances and charges
- 478 Persons having qualifying trade expenditure
- 479 Persons having qualifying non-trade expenditure: income tax
- 480 Persons having qualifying non-trade expenditure: corporation tax
- Chapter 5 Supplementary provisions
- 481 Anti-avoidance: limit on qualifying expenditure
- 482 Sums paid for Crown use etc. treated as paid under licence
- 483 Meaning of “income from patents”
- Part 9 Dredging allowances
- Qualifying expenditure on dredging, etc.
- 484 Dredging allowances
- 485 Qualifying expenditure
- 486 Pre-trading expenditure of qualifying trades, etc.
- Writing-down and balancing allowances
- 487 Writing-down allowances
- 488 Balancing allowances
- Giving effect to allowances
- 489 Giving effect to allowances
- Part 10 Assured tenancy allowances
- Chapter 1 Introduction
- 490 Assured tenancy allowances
- 491 Allowances available in relation to old expenditure only
- 492 Meaning of “approved body”
- 493 Expenditure on the construction of a building
- Chapter 2 The relevant interest
- Introduction
- 494 Introduction
- The relevant interest in the building
- 495 General rule as to what is the relevant interest in the building
- 496 Interest acquired on completion of construction
- 497 Effect of creation of subordinate interest
- 498 Merger of leasehold interest
- 499 Provisions applying on termination of lease
- The relevant interest in the dwelling-house
- 500 The relevant interest in the dwelling-house
- Chapter 3 Qualifying expenditure
- 501 Capital expenditure on construction
- 502 Purchase of unused dwelling-house where developer not involved
- 503 Purchase of dwelling-house sold unused by developer
- Chapter 4 Qualifying dwelling-houses
- 504 Requirements relating to the landlord
- 505 Qualifying dwelling-houses: exclusions
- 506 Dwelling-house ceasing to be qualifying dwelling-house
- Chapter 5 Writing-down allowances
- Entitlement to and calculation of writing-down allowances
- 507 Entitlement to writing-down allowance
- 508 Basic rule for calculating amount of allowance
- 509 Calculation of allowance after sale of relevant interest
- 510 Allowance limited to residue of qualifying expenditure attributable to dwelling-house
- Interpretation
- 511 Qualifying expenditure attributable to dwelling-house
- 512 Residue of qualifying expenditure attributable to dwelling-house
- Chapter 6 Balancing adjustments
- General
- 513 When balancing adjustments are made
- 514 Balancing events
- 515 Proceeds from balancing events
- Calculation of balancing adjustments
- 516 Dwelling-house a qualifying dwelling-house throughout
- 517 Dwelling-house not a qualifying dwelling-house throughout
- 518 Overall limit on balancing charge
- 519 Recovery of old initial allowances made on incorrect assumptions
- Meaning of “the relevant period of ownership” etc.
- 520 The relevant period of ownership
- 521 Starting expenditure
- 522 Adjusted net cost
- Chapter 7 Writing off qualifying expenditure attributable to dwelling-house
- 523 Introduction
- 524 Writing off initial allowances
- 525 Writing off writing-down allowances
- 526 Writing off expenditure for periods when building not used as qualifying dwelling-house
- 527 Writing off or increase of expenditure where balancing adjustment made
- 528 Treatment of demolition costs
- Chapter 8 Supplementary provisions
- 529 Giving effect to allowances and charges
- 530 Apportionment of sums partly referable to non-qualifying assets
- 531 Meaning of “dwelling-house”, “lease” etc.
- Part 11 Contributions
- Chapter 1 Exclusion of expenditure met by contributions
- Rules excluding contributions
- 532 The general rule excluding contributions
- 533 Exclusion of contributions to dredging
- Exceptions to the general rule excluding contributions
- 534 Northern Ireland regional development grants
- 535 Insurance or compensation money
- 536 Contributions not made by public bodies and not eligible for tax relief
- Chapter 2 Contribution allowances
- Contribution allowances under Parts 2, 2A, 3, 4 and 5
- 537 Conditions for contribution allowances under Parts 2, 2A... and 5
- 538 Plant and machinery
- 538A Buildings and structures
- 539 Industrial buildings
- 540 Agricultural buildings
- 541 Mineral extraction
- Effect of transfers of C’s trade on contribution allowances under Parts 3, 4 and 5
- 542 Transfer of C’s trade ...
- Contribution allowances under Part 9
- 543 Contribution allowances under Part 9
- Part 12 Supplementary provisions
- Chapter 1 LONG-TERM business
- 544 Management assets
- 545 Investment assets
- Chapter 2 Additional VAT liabilities and rebates: interpretation, etc.
- 546 Introduction
- 547 “Additional VAT liability” and “additional VAT rebate”
- 548 Time when additional VAT liability or rebate is incurred or made
- 549 Chargeable period in which, and time when, additional VAT liability or rebate accrues
- 550 Apportionment of additional VAT liabilities and rebates
- 551 Supplementary
- Chapter 3 Disposals of oil licences: provisions relating to Parts 5 and 6
- Introduction
- 552 Meaning of “oil licence” and “interest in an oil licence”
- Oil licences relating to undeveloped areas
- 553 Consideration to be treated as nil
- 554 Circumstances in which oil licence relates to undeveloped area
- Disposal of oil licence with exploitation value
- 555 Disposal of oil licence with exploitation value
- Minor definitions
- 556 Minor definitions
- Chapter 4 Partnerships, successions and transfers
- 557 Application of sections 558 and 559
- 558 Effect of partnership changes
- 559 Effect of successions
- 560 Transfer of insurance company business
- 560A Transfers of trade without a change of ownership
- 561 Transfer or division of UK business
- 561A Transfer of asset by reason of cross-border merger
- Chapter 5 Miscellaneous
- Apportionment
- 562 Apportionment where property sold together
- Procedure for determining certain questions
- 563 Procedure for determining certain questions affecting one or more persons
- 564 Questions to which procedure in section 563 applies
- Tax agreements for income tax purposes
- 565 Tax agreements for income tax purposes
- Companies not resident in the United Kingdom
- 566 Companies not resident in the United Kingdom
- Sales treated as being for alternative amount
- 567 Sales treated as being for alternative amount: introductory
- 568 Sales treated as being at market value
- 569 Election to treat sale as being for alternative amount
- 570 Elections: supplementary
- Anti-avoidance
- 570A Avoidance affecting proceeds of balancing event
- Chapter 6 Final provisions
- Orders and regulations
- 570B Orders and regulations made by Treasury or Commissioners
- General interpretation
- 571 Application of Act to parts of assets
- 572 References to sale of property and time of sale
- 573 Transfers treated as sales
- 573A Special tax sites
- 574 Meaning of “control”
- 575 Meaning of “connected” persons
- 575A Section 575: supplementary
- 576 Meaning of “the Inland Revenue” etc.
- 577 Other definitions
- Amendments, repeals, citation etc.
- 578 Consequential amendments
- 579 Commencement and transitional provisions and savings
- 580 Repeals
- 581 Citation
- Schedules
- SCHEDULE A1 First-year tax credits
- Part 1 Entitlement to first-year tax credits
- Entitlement to first-year tax credits
- Amount of first-year tax credit
- Meaning of “relevant first-year expenditure”
- Incurring a loss in carrying on a qualifying activity
- Unrelieved loss
- Total amount of company's PAYE and NICs liabilities
- Part 2 Giving effect to first-year tax credits
- Payment in respect of first-year tax credit
- Restriction on losses carried forward
- Payment in respect of first-year tax credit not income
- Part 3 Clawback of first-year tax credit
- Circumstances in which first-year tax credit clawed back
- Interpretation
- Amount of restored loss
- Clawback of first-year tax credits: administrative provision
- Part 4 Supplementary
- Artificially inflated claims
- Interpretation
- Schedule 1 Abbreviations and defined expressions
- Part 1 Abbreviations
- Part 2 Defined expressions
- Schedule 2 Consequential amendments
- The Taxes Management Act 1970 (c. 9)
- Section 42 (procedure for making claims etc.)
- Section 57 (regulations about appeals)
- Section 58 (proceedings in tax cases in Northern Ireland)
- Section 98 (special returns, etc.)
- The Finance Act 1982 (c. 39)
- Section 137 (expenditure met by regional development plans to be disregarded for certain purposes)
- The London Regional Transport Act 1984 (c. 32)
- Schedule 5 (transitional provisions and savings)
- The Films Act 1985 (c. 21)
- Section 6 (certification of films as British films)
- Schedule 1 (certification of films as British films)
- The Trustee Savings Banks Act 1985 (c. 58)
- Schedule 2 (taxation)
- The Income and Corporation Taxes Act 1988 (c. 1)
- Section 384 (restrictions on right of set-off)
- Sections 434D and 434E (capital allowances: management assets; investment assets)
- Sections 520 to 523 (patents)
- Section 530 (disposal of know-how)
- Section 831 (interpretation of Act)
- Section 834 (interpretation of the Corporation Tax Acts)
- Schedule 18 (group relief)
- Schedule 19AC (modification of Act in relation to overseas life insurance companies)
- Schedule 21 (tax relief in connection with schemes for rationalising industry and other redundancy schemes)
- Schedule 24 (assumptions for calculating chargeable profits, creditable tax and corresponding United Kingdom tax of foreign companies)
- The Finance Act 1988 (c. 39)
- Schedule 12 (building societies: change of status)
- The Finance Act 1989 (c. 26)
- The Electricity Act 1989 (c. 29)
- Schedule 11 (taxation provisions)
- The Finance Act 1990 (c. 29)
- Section 126 (pools payments for football ground improvements)
- The Finance Act 1991 (c. 31)
- Section 78 (sharing of transmission facilities)
- The Social Security Contributions and Benefits Act 1992 (c. 4)
- Schedule 2 (levy of Class 4 contributions with income tax)
- The Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)
- Schedule 2 (levy of Class 4 contributions with income tax)
- The Taxation of Chargeable Gains Act 1992 (c. 12)
- Section 37 (consideration chargeable to tax on income)
- Section 41 (restriction of losses by reference to capital allowances etc.)
- Section 195 (allowance of certain drilling expenditure)
- Section 288 (interpretation)
- Schedule 3 (assets held on 31st March 1982)
- The Finance (No. 2) Act 1992 (c. 48)
- New sections 40A to 40D (films)
- Section 41 (relief for preliminary expenditure)
- Section 42 (relief for production or acquisition expenditure)
- Section 43 (interpretation of sections 41 and 42)
- Schedule 17 (Northern Ireland electricity)
- The Finance Act 1993 (c. 34)
- Section 92 (the basic rule: sterling to be used)
- Section 93 (use of currency other than sterling)
- The Agriculture Act 1993 (c. 37)
- Schedule 2 (provisions relating to carrying out approved schemes or reorganisation)
- The Finance Act 1994 (c. 9)
- Schedule 24 (provisions relating to the Railways Act 1993)
- Schedule 25 (Northern Ireland Airports Limited)
- The Coal Industry Act 1994 (c. 21)
- Schedule 4 (taxation provisions)
- The Atomic Energy Authority Act 1995 (c. 37)
- Schedule 3 (taxation provisions)
- The Finance Act 1996 (c. 8)
- Section 151 (benefits under pilot schemes)
- The Broadcasting Act 1996 (c. 55)
- Schedule 7 (transfer schemes relating to BBC transmission network: taxation provisions)
- The Finance Act 1997 (c. 16)
- Schedule 12 (leasing arrangements: finance leases and loans)
- The Finance (No. 2) Act 1997 (c. 58)
- Section 48 (films: relief for production or acquisition expenditure)
- The Finance Act 1998 (c. 36)
- Section 117 (company tax returns, assessments and related matters)
- Schedule 18 (company tax returns, assessments and related matters)
- The Finance Act 1999 (c. 16)
- The Greater London Authority Act 1999 (c. 29)
- Schedule 33 (taxation)
- The Finance Act 2000 (c. 17)
- Section 105 (corporation tax: use of currencies other than sterling)
- Schedule 22 (tonnage tax)
- The Transport Act 2000 (c. 38)
- Schedule 26 (transfers: tax)
- Schedule 3 Transitionals and savings
- Part 1 Continuity of the law
- Part 2 Changes in the law
- Part 3 General
- Capital expenditure
- Exclusion of double relief
- Part 4 Plant and machinery allowances
- Introduction
- Use for qualifying activity of plant or machinery provided for other purposes
- Use for qualifying activity of plant or machinery which is a gift
- Qualifying expenditure
- Buildings, structures and land
- First-year qualifying expenditure
- Hire-purchase and similar contracts
- Plant or machinery acquired under hire purchase etc.
- Plant or machinery on hire purchase etc.: fixtures
- Plant or machinery provided by lessee
- Computer software
- Software and rights to software
- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- Long-life assets
- Long-life asset expenditure
- Overseas leasing
- Meaning of “overseas leasing”
- Recovery of first-year allowances in case of joint lessees
- Letting ships or aircraft to obtain old first-year allowance not a qualifying purpose
- Ships: deferments etc.
- Further registration requirement
- Mining and oil industries
- Pre-trading expenditure on mineral exploration and access
- Abandonment expenditure incurred before cessation of ring fence trade
- Abandonment expenditure incurred after cessation of ring fence trade
- Oil production sharing contracts
- Fixtures
- Meaning of “interest in land” for purposes of Chapter 14 of Part 2 (fixtures)
- Equipment lessors
- Equipment lessee has qualifying activity etc.
- Equipment lessor has right to sever fixture that is not part of building
- Equipment lease is part of affordable warmth programme
- Purchaser of land giving consideration for fixture
- Purchaser of land discharging obligations of equipment lessee
- Incoming lessee where lessor entitled to allowances
- Incoming lessee where lessor not entitled to allowances
- Fixture on which a plant and machinery allowance has been claimed
- Fixture on which industrial buildings allowance has been made
- Fixture on which research and development allowance has been made
- Disposal value in relation to fixtures: general
- Assets provided or used only partly for qualifying activity
- Effect of significant reduction in use for purposes of qualifying activity
- Anti-avoidance
- Relevant transactions: sale, hire-purchase (etc.) and assignment
- Hire purchase etc. and finance leases
- Sale and finance leasebacks
- Additional VAT liabilities and rebates
- Supplementary provisions
- Successions by beneficiaries
- General
- Vehicles provided by employees in 1990-91
- Certain expenditure incurred before 6th April 1976
- Part 5 Industrial buildings allowances
- Industrial buildings
- Bridge undertakings
- Building used by more than one licensee
- Qualifying hotels
- Non-industrial part of building disregarded
- Qualifying expenditure
- Purchase of used building from developer
- Qualifying enterprise zone expenditure
- Initial allowances
- Building occupied by qualifying licensee
- Grants affecting entitlement to initial allowances
- Writing-down allowances
- Basic rule for calculating amount of allowance
- Calculation of amount after relevant event
- Balancing adjustments
- When balancing adjustments are made
- Net allowance given
- Balancing adjustment on realisation of capital value
- Writing off qualifying expenditure
- Writing off qualifying expenditure when building not an industrial building
- Crown or other person not within the charge to tax entitled to the relevant interest
- Highway undertakings
- Special provisions relating to highway concessions
- Additional VAT liabilities and rebates
- Additional VAT liabilities and initial allowances: 1992-93 cases
- Additional VAT liabilities and initial allowances: further case
- 1992-93 qualifying expenditure
- Supplementary provisions
- Arrangements having an artificial effect on pricing
- General
- Expenditure on preparatory work on land where building used before 6th April 1956
- Part 6 Agricultural buildings allowances
- Overall limit on balancing charge
- Meaning of “freehold interest in land” for purposes of Part 4
- Exclusion of expenditure incurred before 1st April 1986
- The writing-down period
- Part 7 Mineral extraction allowances
- Qualifying expenditure on acquiring a mineral asset
- Qualifying expenditure where buildings or structures cease to be used
- Qualifying expenditure: second-hand assets
- Claims before 26th November 1996 in respect of acquisition of mineral asset owned by previous trader
- Acquisition of oil licence from non-trader before 13th September 1995
- Restrictions on qualifying expenditure in case of UK oil licence and certain other assets inapplicable for expenditure pre-16th July 1985
- Expenditure incurred pre-1st April 1986
- Part 8 Research and development allowances
- Expenditure incurred partly on research and development
- References to research and development in relation to new trades
- Disposal of oil licences
- Part 9 Patent allowances
- Expenditure incurred before 1st April 1986
- Scope of paragraphs 93 to 101
- Qualifying expenditure and unrelieved qualifying expenditure
- Entitlement to writing-down allowances
- The writing-down period
- Calculation of writing-down allowances
- End of writing-down allowances
- Reduced writing-down allowance
- Balancing allowance on sale or expiry of patent rights
- Balancing charges
- Giving effect to allowances and charges
- Supplementary provisions
- Limit on qualifying expenditure
- Part 10 Dredging allowances
- Writing-down allowances
- Balancing allowances
- The writing-down period
- Part 11 Contributions
- Regional development grants
- Contributions not made by public bodies and not eligible for tax relief
- Conditions for allowances
- Agricultural buildings
- Part 12 Supplemental
- Transfer of insurance company business
- Election regarding sale consideration
- Part 13 Other enactments
- Schedule 4 Repeals
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