Content

1. Part 1

   Introduction

   1. Chapter 1

      Capital allowances: general

      1. 1. Capital allowances

      2. 2. General means of giving effect to capital allowances

      3. 3. Claims for capital allowances

      4. 4. Capital expenditure

      5. 5. When capital expenditure is incurred

      6. 6. Meaning of "chargeable period"

   2. Chapter 2

      Exclusion of double relief

      1. 7. No double allowances

      2. 8. No double relief through pooling under Part 2 (plant and machinery allowances)

      3. 9. Interaction between fixtures claims and other claims

      4. 10. Interpretation

2. Part 2

   Plant and machinery allowances

   1. Chapter 1

      Introduction

      1. 11. General conditions as to availability of plant and machinery allowances

      2. 12. Expenditure incurred before qualifying activity carried on

      3. 13. Use for qualifying activity of plant or machinery provided for other purposes

      4. 14. Use for qualifying activity of plant or machinery which is a gift

   2. Chapter 2

      Qualifying activities

      1. 15. Qualifying activities

      2. 16. Ordinary Schedule A businesses

      3. 17. Furnished holiday lettings businesses

      4. 18. Management of investment companies

      5. 19. Special leasing of plant or machinery

      6. 20. Employments and offices

   3. Chapter 3

      Qualifying expenditure

      1. Buildings, structures and land

         1. 21. Buildings

         2. 22. Structures, assets and works

         3. 23. Expenditure unaffected by sections 21 and 22

         4. 24. Interests in land

         5. 25. Building alterations connected with installation of plant or machinery

      2. Demolition costs

         1. 26. Demolition costs

      3. Expenditure on thermal insulation, safety measures, etc.

         1. 27. Application of Part to thermal insulation, safety measures, etc.

         2. 28. Thermal insulation of industrial buildings

         3. 29. Fire safety

         4. 30. Safety at designated sports grounds

         5. 31. Safety at regulated stands at sports grounds

         6. 32. Safety at other sports grounds

         7. 33. Personal security

      4. Exclusion of certain types of expenditure

         1. 34. Expenditure by MPs and others on accommodation

         2. 35. Expenditure on plant or machinery for use in dwelling-house not qualifying expenditure in certain cases

         3. 36. Restriction on qualifying expenditure in case of employment or office

         4. 37. Exclusion where sums payable in respect of depreciation

         5. 38. Production animals etc.

   4. Chapter 4

      First-year qualifying expenditure

      1. General

         1. 39. First-year allowances available for certain types of qualifying expenditure only

      2. Types of expenditure which may qualify for first-year allowances

         1. 40. Expenditure incurred for Northern Ireland purposes by small or medium-sized enterprises

         2. 41. Miscellaneous exclusions from section 40 (expenditure for Northern Ireland purposes etc.)

         3. 42. Exclusion of plant or machinery partly for use outside Northern Ireland

         4. 43. Effect of plant or machinery subsequently being primarily for use outside Northern Ireland

         5. 44. Expenditure incurred by small or medium-sized enterprises

         6. 45. ICT expenditure incurred by small enterprises

         7. 46. General exclusions applying to sections 40, 44 and 45

      3. Expenditure of small or medium-sized enterprises

         1. 47. Expenditure of small or medium-sized enterprises: companies

         2. 48. Expenditure of small or medium-sized enterprises: businesses

         3. 49. Whether company is a member of a large or medium-sized group

      4. Supplementary

         1. 50. Time when expenditure is incurred

         2. 51. Disclosure of information between UK tax authorities

   5. Chapter 5

      Allowances and charges

      1. First-year allowances

         1. 52. First-year allowances

      2. Pooling

         1. 53. Pooling of qualifying expenditure

         2. 54. The different kinds of pools

      3. Writing-down and balancing allowances and balancing charges

         1. 55. Determination of entitlement or liability

         2. 56. Amount of allowances and charges

      4. Available qualifying expenditure

         1. 57. Available qualifying expenditure

         2. 58. Initial allocation of qualifying expenditure to pools

         3. 59. Unrelieved qualifying expenditure

      5. Disposal events and disposal values: general

         1. 60. Meaning of "disposal receipt" and "disposal event"

         2. 61. Disposal events and disposal values

         3. 62. General limit on amount of disposal value

         4. 63. Cases in which disposal value is nil

         5. 64. Case in which no disposal value need be brought into account

      6. The final chargeable period

         1. 65. The final chargeable period

      7. List of provisions outside this Chapter about disposal values

         1. 66. List of provisions outside this Chapter about disposal values

   6. Chapter 6

      Hire-purchase etc. and plant or machinery provided by lessee

      1. Hire-purchase and similar contracts

         1. 67. Plant or machinery treated as owned by person entitled to benefit of contract, etc.

         2. 68. Disposal value on cessation of notional ownership

         3. 69. Hire-purchase etc. and fixtures

      2. Plant or machinery provided by lessee

         1. 70. Plant or machinery provided by lessee

   7. Chapter 7

      Computer software

      1. 71. Software and rights to software

      2. 72. Disposal values

      3. 73. Limit on disposal values

   8. Chapter 8

      Cars, etc.

      1. Cars above the cost threshold

         1. 74. Single asset pool

         2. 75. General limit on amount of writing-down allowance

         3. 76. Limit where part of expenditure met by another person

         4. 77. Car used partly for purposes other than those of qualifying activity

         5. 78. Effect of partial depreciation subsidy

         6. 79. Cases where Chapter 17 (anti-avoidance) applies

      2. Vehicles provided for purposes of employment or office

         1. 80. Vehicles provided for purposes of employment or office

      3. Interpretation

         1. 81. Extended meaning of "car"

         2. 82. Qualifying hire cars

   9. Chapter 9

      Short-life assets

      1. 83. Meaning of "short-life asset"

      2. 84. Cases in which short-life asset treatment is ruled out

      3. 85. Election for short-life asset treatment: procedure

      4. 86. Short-life asset pool

      5. 87. Short-life assets provided for leasing

      6. 88. Sales at under-value

      7. 89. Disposal to connected person

   10. Chapter 10

       Long-life assets

       1. Long-life asset expenditure

          1. 90. Long-life asset expenditure

          2. 91. Meaning of "long-life asset"

          3. 92. Application of Chapter to part of expenditure

       2. Expenditure excluded from being long-life asset expenditure

          1. 93. Fixtures etc.

          2. 94. Ships

          3. 95. Railway assets

          4. 96. Cars

          5. 97. Expenditure within the relevant monetary limit: general

          6. 98. Expenditure to which the monetary limits apply

          7. 99. The monetary limit

          8. 100. Exceeding the monetary limit

       3. Rules applying to long-life asset expenditure

          1. 101. Long-life asset pool

          2. 102. Writing-down allowances at 6%

       4. Anti-avoidance provisions

          1. 103. Later claims

          2. 104. Disposal value of long-life assets

   11. Chapter 11

       Overseas leasing

       1. Basic terms

          1. 105. "Leasing", "overseas leasing" etc.

          2. 106. The designated period

       2. Certain expenditure to be pooled

          1. 107. The overseas leasing pool

          2. 108. Effect of disposal to connected person on overseas leasing pool

       3. Allowances reduced or, in certain cases, prohibited

          1. 109. Writing-down allowances at 10%

          2. 110. Cases where allowances are prohibited

       4. Recovery of excess allowances

          1. 111. Excess allowances: standard recovery mechanism

          2. 112. Excess allowances: connected persons

          3. 113. Excess allowances: special provision for ships

       5. Recovery of allowances given in cases where prohibition applies

          1. 114. Prohibited allowances: standard recovery mechanism

          2. 115. Prohibited allowances: connected persons

       6. Application of Chapter in relation to joint lessees

          1. 116. Mitigation of regime

          2. 117. Recovery of allowances in case of joint lessees

       7. Duties to supply information

          1. 118. Certificate relating to protected leasing

          2. 119. Notice of change of use of plant or machinery

          3. 120. Notice and joint lessees

       8. Qualifying purposes

          1. 121. Meaning of "short-term leasing"

          2. 122. Short-term leasing by buyer, lessee, etc.

          3. 123. Ships and aircraft

          4. 124. Transport containers

          5. 125. Other qualifying purposes

       9. Minor definitions

          1. 126. Minor definitions

   12. Chapter 12

       Ships

       1. Pooling and postponement of allowances

          1. 127. Single ship pool

          2. 128. Expenditure which is not to be allocated to single ship pool

          3. 129. Election to use the appropriate non-ship pool

          4. 130. Notice postponing first-year or writing-down allowance

          5. 131. Effect of postponement

          6. 132. Disposal events and single ship pool

          7. 133. Ship not used

       2. Deferment of balancing charges

          1. 134. Deferment of balancing charges: introduction

          2. 135. Claim for deferment

          3. 136. Further conditions for deferment

          4. 137. Effect of deferment

          5. 138. Limit on amount deferred

          6. 139. Amount taken into account in respect of old ship

       3. Attribution of deferred amounts

          1. 140. Notice attributing deferred amounts to new expenditure

          2. 141. Deferred amounts attributed to earlier expenditure first

          3. 142. Variation of attribution

          4. 143. Effect of attribution

          5. 144. Amounts which cease to be attributable

          6. 145. Requirement to notify where no entitlement to defer amounts

       4. Expenditure on new shipping

          1. 146. Basic meaning of expenditure on new shipping

          2. 147. Exclusions: ship previously owned

          3. 148. Exclusions: object to secure deferment

          4. 149. Exclusions: later events

          5. 150. Exclusions where expenditure not incurred by shipowner

       5. Qualifying ships

          1. 151. Basic meaning of qualifying ship

          2. 152. Ships under 100 tons

          3. 153. Ships which are not qualifying ships

          4. 154. Further registration requirement

       6. Deferment of balancing charges: supplementary provisions

          1. 155. Change in the persons carrying on the qualifying activity

          2. 156. Connected persons

       7. Further provisions

          1. 157. Adjustment of assessments etc.

          2. 158. Members of same group

   13. Chapter 13

       Provisions affecting mining and oil industries

       1. Expenditure connected with mineral extraction trades

          1. 159. Meaning of "mineral extraction trade" etc.

          2. 160. Expenditure treated as incurred for purposes of mineral extraction trade

          3. 161. Pre-trading expenditure on mineral exploration and access

       2. Provisions relating to ring fence trades

          1. 162. Ring fence trade a separate qualifying activity

          2. 163. Meaning of "abandonment expenditure"

          3. 164. Abandonment expenditure incurred before cessation of ring fence trade

          4. 165. Abandonment expenditure within 3 years of ceasing ring fence trade

       3. Transfers of interests in oil fields: anti-avoidance

          1. 166. Transfers of interests in oil fields: anti-avoidance

       4. Oil production sharing contracts

          1. 167. Oil production sharing contracts

          2. 168. Expenditure on plant or machinery incurred by contractor

          3. 169. Expenditure on plant or machinery incurred by participator

          4. 170. Participator's expenditure attributable to plant or machinery

          5. 171. Disposal values on cessation of ownership

   14. Chapter 14

       Fixtures

       1. Introduction

          1. 172. Scope of Chapter etc.

          2. 173. Meaning of "fixture" and "relevant land"

          3. 174. Meaning of "equipment lease" and "lease"

          4. 175. Meaning of "interest in land", etc.

       2. Persons who are treated as owners of fixtures

          1. 176. Person with interest in relevant land having fixture for purposes of qualifying activity

          2. 177. Equipment lessors

          3. 178. Equipment lessee has qualifying activity etc.

          4. 179. Equipment lessor has right to sever fixture that is not part of building

          5. 180. Equipment lease is part of affordable warmth programme

          6. 181. Purchaser of land giving consideration for fixture

          7. 182. Purchaser of land discharging obligations of equipment lessee

          8. 183. Incoming lessee where lessor entitled to allowances

          9. 184. Incoming lessee where lessor not entitled to allowances

       3. Restrictions on amount of qualifying expenditure

          1. 185. Fixture on which a plant and machinery allowance has been claimed

          2. 186. Fixture on which an industrial buildings allowance has been made

          3. 187. Fixture on which a research and development allowance has been made

       4. Cessation of ownership of fixtures

          1. 188. Cessation of ownership when person ceases to have qualifying interest

          2. 189. Identifying the qualifying interest in special cases

          3. 190. Cessation of ownership of lessor where section 183 applies

          4. 191. Cessation of ownership on severance of fixture

          5. 192. Cessation of ownership of equipment lessor

       5. Acquisition of ownership of fixture when another ceases to own it

          1. 193. Acquisition of ownership by lessor or licensor on termination of lease or licence

          2. 194. Acquisition of ownership by assignee of equipment lessor

          3. 195. Acquisition of ownership by equipment lessee

       6. Disposal values

          1. 196. Disposal values in relation to fix

   15. Chapter 15

       Asset provided or used only partly for qualifying activity

       1. 205. Reduction of first-year allowances

       2. 206. Single asset pool etc.

       3. 207. Reduction of allowances and charges on expenditure in single asset pool

       4. 208. Effect of significant reduction in use for purposes of qualifying activity

   16. Chapter 16

       Partial depreciation subsidies

       1. 209. Meaning of "partial depreciation subsidy"

       2. 210. Reduction of first-year allowances

       3. 211. Single asset pool etc.

       4. 212. Reduction of allowances and charges on expenditure in single asset pool

   17. Chapter 17

       Anti-avoidance

       1. Relevant transactions

          1. 213. Relevant transactions: sale, hire-purchase (etc.) and assignment

       2. Restrictions on allowances

          1. 214. Connected persons

          2. 215. Transactions to obtain allowances

          3. 216. Sale and leaseback, etc.

          4. 217. No first-year allowance for B's expenditure

          5. 218. Restriction on B's qualifying expenditure

       3. Finance leases

          1. 219. Meaning of "finance lease"

          2. 220. Allocation of expenditure to a chargeable period

       4. Sale and finance leasebacks

          1. 221. Meaning of "sale and finance leaseback"

          2. 222. Disposal value restricted

          3. 223. No first-year allowance for B's expenditure

          4. 224. Restriction on B's qualifying expenditure

          5. 225. B's qualifying expenditure if lessor not bearing non-compliance risk

          6. 226. Qualifying expenditure limited in subsequent transactions

       5. Sale and leaseback or sale and finance leaseback: election for special treatment

          1. 227. Circumstances in which election may be made

          2. 228. Effect of election: relaxation of restriction on B's qualifying expenditure, etc.

       6. Miscellaneous and supplementary

          1. 229. Hire-purchase etc.

          2. 230. Exception for manufacturers and suppliers

          3. 231. Adjustments of assessments etc.

          4. 232. Meaning of connected person

          5. 233. Additional VAT liabilities and rebates

   18. Chapter 18

       Additional VAT liabilities and rebates

       1. Introduction

          1. 234. Introduction

       2. Additional VAT liability

          1. 235. Additional VAT liability treated as qualifying expenditure

          2. 236. Additional VAT liability generates first-year allowance

          3. 237. Exceptions to section 236

       3. Additional VAT rebate

          1. 238. Additional VAT rebate generates disposal value

          2. 239. Limit on disposal value where additional VAT rebate

       4. Short-life assets: balancing allowance

          1. 240. Additional VAT liability

       5. Anti-avoidance

          1. 241. No first-year allowance in respect of additional VAT liability

          2. 242. Restriction on B's qualifying expenditure: general

          3. 243. Restriction on B's qualifying expenditure: sale and finance leaseback

          4. 244. B's qualifying expenditure if lessor not bearing non-compliance risk

          5. 245. Effect of election under section 227 on additional VAT liability

          6. 246. Miscellaneous

   19. Chapter 19

       Giving effect to allowances and charges

       1. Trades

          1. 247. Trades

       2. Property businesses

          1. 248. Ordinary Schedule A businesses

          2. 249. Furnished holiday lettings businesses

          3. 250. Overseas property businesses

       3. Activities analogous to trades

          1. 251. Professions and vocations

          2. 252. Mines, transport undertakings etc.

       4. Investment companies

          1. 253. Investment companies

       5. Life assurance business

          1. 254. Introductory

          2. 255. Apportionment of allowances and charges

          3. 256. Different giving effect rules for different categories of business

          4. 257. Supplementary

       6. Special leasing of plant or machinery

          1. 258. Special leasing: income tax

          2. 259. Special leasing: corporation tax (general)

          3. 260. Special leasing: corporation tax (excess allowance)

          4. 261. Special leasing: life assurance business

       7. Employments and offices

          1. 262. Employments and offices

   20. Chapter 20

       Supplementary provisions

       1. Partnerships and successions

          1. 263. Qualifying activities carried on in partnership

          2. 264. Partnership using property of a partner

          3. 265. Successions: general

          4. 266. Election where predecessor and successor are connected persons

          5. 267. Effect of election

          6. 268. Successions by beneficiaries

       2. Miscellaneous

          1. 269. Use of plant or machinery for business entertainment

          2. 270. Shares in plant or machinery

3. Part 3

   Industrial buildings allowances

   1. Chapter 1

      Introduction

      1. 271. Industrial buildings allowances

      2. 272. Expenditure on the construction of a building

      3. 273. Preparation of sites for plant or machinery

   2. Chapter 2

      Industrial buildings

      1. Buildings in use for the purposes of a qualifying trade

         1. 274. Trades and undertakings which are "qualifying trades"

         2. 275. Building used for welfare of workers

         3. 276. Parts of trades and undertakings

         4. 277. Exclusion of dwelling-houses, retail shops, showrooms, hotels and offices etc.

         5. 278. Building used by more than one licensee

      2. Qualifying hotels and sports pavilions

         1. 279. Qualifying hotels

         2. 280. Qualifying sports pavilions

      3. Commercial buildings (enterprise zones)

         1. 281. Commercial buildings (enterprise zones)

      4. Supplementary provisions

         1. 282. Buildings outside the United Kingdom

         2. 283. Non-industrial part of building disregarded

         3. 284. Roads on industrial estates etc.

         4. 285. Cessation of use and temporary disuse of building

   3. Chapter 3

      The relevant interest in the building

      1. 286. General rule as to what is the relevant interest

      2. 287. Interest acquired on completion of construction

      3. 288. Effect of creation of subordinate interest

      4. 289. Merger of leasehold interest

      5. 290. Election to treat grant of lease exceeding 50 years as sale

      6. 291. Supplementary provisions with respect to elections

   4. Chapter 4

      Qualifying expenditure

      1. Introduction

         1. 292. Meaning of "qualifying expenditure"

         2. 293. Meaning of references to carrying on a trade as a developer

      2. Qualifying expenditure

         1. 294. Capital expenditure on construction of a building

         2. 295. Purchase of unused building where developer not involved

         3. 296. Purchase of building which has been sold unused by developer

         4. 297. Purchase of used building from developer

      3. Qualifying enterprise zone expenditure

         1. 298. The time limit for qualifying enterprise zone expenditure

         2. 299. Application of section 294

         3. 300. Application of sections 295 and 296

         4. 301. Purchase of building within 2 years of first use

      4. Part of expenditure within time limit for qualifying enterprise zone expenditure

         1. 302. Qualifying enterprise zone expenditure where section 295 or 296 applies

         2. 303. Purchase of building within 2 years of first use

         3. 304. Application of section 303 where developer involved

   5. Chapter 5

      Initial allowances

      1. 305. Initial allowances for qualifying enterprise zone expenditure

      2. 306. Amount of initial allowance and period for which allowance made

      3. 307. Building not industrial building when first used etc.

      4. 308. Grants affecting entitlement to initial allowances

   6. Chapter 6

      Writing-down allowances

      1. 309. Entitlement to writing-down allowance

      2. 310. Basic rule for calculating amount of allowance

      3. 311. Calculation of allowance after sale of relevant interest

      4. 312. Allowance limited to residue of qualifying expenditure

      5. 313. Meaning of "the residue of qualifying expenditure"

   7. Chapter 7

      Balancing adjustments

      1. General

         1. 314. When balancing adjustments are made

         2. 315. Main balancing events

         3. 316. Proceeds from main balancing events

         4. 317. Balancing event where hotel not qualifying hotel for 2 years

      2. Calculation of balancing adjustments

         1. 318. Building an industrial building etc. throughout

         2. 319. Building not an industrial building etc. throughout

         3. 320. Overall limit on balancing charge

      3. Meaning of "the relevant period of ownership" etc.

         1. 321. The relevant period of ownership

         2. 322. Starting expenditure

         3. 323. Adjusted net cost

         4. 324. Net allowances

      4. Balancing allowances restricted where sale subject to subordinate interest

         1. 325. Balancing allowances restricted where sale subject to subordinate interest

         2. 326. Interpretation of section 325

      5. Qualifying enterprise zone expenditure: effect of realising capital value

         1. 327. Capital value provisions: application of provisions

         2. 328. Balancing adjustment on realisation of capital value

         3. 329. Capital value that is attributable to subordinate interest

         4. 330. Exception for payments more than 7 years after agreement

         5. 331. Capital value provisions: interpretation

   8. Chapter 8

      Writing off qualifying expenditure

      1. 332. Introduction

      2. 333. Writing off initial allowances

      3. 334. Writing off writing-down allowances

      4. 335. Writing off research and development allowances

      5. 336. Writing off expenditure when building not an industrial building

      6. 337. Writing off or increase of expenditure where balancing adjustment made

      7. 338. Writing off capital value which has been realised

      8. 339. Crown or other person not within the charge to tax entitled to the relevant interest

      9. 340. Treatment of demolition costs

   9. Chapter 9

      Highway undertakings

      1. 341. Carrying on of highway undertakings

      2. 342. The relevant interest

      3. 343. Balancing adjustment on ending of concession

      4. 344. Cases where highway concession is to be treated as extended

   10. Chapter 10

       Additional VAT liabilities and rebates

       1. Introduction

          1. 345. Introduction

       2. Additional VAT liabilities

          1. 346. Additional VAT liabilities and initial allowances

          2. 347. Additional VAT liabilities and writing-down allowances

          3. 348. Additional VAT liabilities and writing off initial allowances

       3. Additional VAT rebates

          1. 349. Additional VAT rebates and writing-down allowances

          2. 350. Additional VAT rebates and balancing adjustments

          3. 351. Additional VAT rebates and writing off qualifying expenditure

   11. Chapter 11

       Giving effect to allowances and charges

       1. 352. Trades

       2. 353. Lessors and licensors

       3. 354. Buildings temporarily out of use

       4. 355. Buildings for miners etc.: carry-back of balancing allowances

   12. Chapter 12

       Supplementary provisions

       1. 356. Apportionment of sums partly referable to non-qualifying assets

       2. 357. Arrangements having an artificial effect on pricing

       3. 358. Requisitioned land

       4. 359. Provisions applying on termination of lease

       5. 360. Meaning of "lease" etc.

4. Part 4

   Agricultural buildings allowances

   1. Chapter 1

      Introduction

      1. 361. Agricultural buildings allowances

      2. 362. Meaning of "husbandry"

      3. 363. Expenditure on the construction of a building

   2. Chapter 2

      The relevant interest

      1. 364. General rule as to what is the relevant interest

      2. 365. Effect of creation of subordinate lease

      3. 366. Interest conveyed or assigned by way of security

      4. 367. Merger of leasehold interest

      5. 368. Provisions applying on ending of lease

   3. Chapter 3

      Qualifying expenditure

      1. 369. Capital expenditure on construction of agricultural building

      2. 370. Purchase of relevant interest before first use of agricultural building

      3. 371. Different relevant interests in different parts of the related agricultural land

   4. Chapter 4

      Writing-down allowances

      1. 372. Entitlement to writing-down allowance

      2. 373. Basic rule for calculating amount of allowance

      3. 374. First use of building not for purposes of husbandry, etc.

      4. 375. Effect of acquisition of relevant interest after first use of building

      5. 376. Calculation of allowance after acquisition

      6. 377. Chargeable period when balancing adjustment made

      7. 378. Allowance limited to residue of qualifying expenditure

      8. 379. Final writing-down allowance

   5. Chapter 5

      Balancing adjustments

      1. General

         1. 380. When balancing adjustments are made

         2. 381. Balancing events (on making an election)

         3. 382. Requirements as to elections

         4. 383. Proceeds from balancing events

         5. 384. Exclusion of proportion of proceeds

      2. Calculation of balancing adjustments

         1. 385. Calculation of balancing adjustment

         2. 386. The residue of qualifying expenditure

         3. 387. Overall limit on balancing charge

         4. 388. Acquisition of relevant interest in part of land, etc.

         5. 389. Balancing allowances restricted where sale subject to subordinate interest etc.

         6. 390. Interpretation of section 389

   6. Chapter 6

      Supplementary provisions

      1. Giving effect to allowances and charges

         1. 391. Trades

         2. 392. Schedule A businesses

      2. Meaning of "freehold interest", "lease" etc.

         1. 393. Meaning of "freehold interest", "lease", etc.

5. Part 5

   Mineral extraction allowances

   1. Chapter 1

      Introduction

      1. 394. Mineral extraction allowances

      2. 395. Qualifying expenditure

      3. 396. Meaning of "mineral exploration and access"

      4. 397. Meaning of "mineral asset"

      5. 398. Relationship between main types of qualifying expenditure

      6. 399. Expenditure excluded from being qualifying expenditure

   2. Chapter 2

      Qualifying expenditure on mineral exploration and access

      1. 400. Qualifying expenditure on mineral exploration and access

      2. 401. Pre-trading exploration expenditure

      3. 402. Pre-trading expenditure on plant or machinery

   3. Chapter 3

      Qualifying expenditure on acquiring a mineral asset

      1. 403. Qualifying expenditure on acquiring a mineral asset

      2. 404. Exclusion of undeveloped market value of land

      3. 405. Qualifying expenditure where buildings or structures cease to be used

      4. 406. Reduction where premium relief previously allowed

   4. Chapter 4

      Qualifying expenditure: second-hand assets

      1. Assets reflecting expenditure on mineral exploration and access

         1. 407. Acquisition of mineral asset owned by previous trader

         2. 408. Acquisition of oil licence from non-trader

         3. 409. Acquisition of other assets from non-traders

      2. Qualifying expenditure on assets limited by reference to historic costs

         1. 410. UK oil licence: limit is original licence payment

         2. 411. Assets generally: limit is residue of previous trader's qualifying expenditure

         3. 412. Transfers of mineral assets within group: limit is initial group expenditure

         4. 413. Transfers of mineral assets within group: supplementary

   5. Chapter 5

      Other kinds of qualifying expenditure

      1. 414. Expenditure on works likely to become valueless

      2. 415. Contribution to buildings or works for benefit of employees abroad

      3. 416. Expenditure on restoration within 3 years of ceasing to trade

   6. Chapter 6

      Allowances and charges

      1. Writing-down and balancing allowances and balancing charges

         1. 417. Determination of entitlement or liability

         2. 418. Amount of allowances and charges

      2. Unrelieved qualifying expenditure

         1. 419. Unrelieved qualifying expenditure

      3. Disposal values

         1. 420. Meaning of "disposal receipt"

         2. 421. Disposal of, or ceasing to use, asset

         3. 422. Use of asset otherwise than for permitted development etc.

         4. 423. Sections 421 and 422: amount of disposal value to be brought into account

         5. 424. Disposal value restricted in case of interest in land

         6. 425. Receipt of capital sum

      4. Cases in which a person is entitled to a balancing allowance

         1. 426. Pre-trading expenditure

         2. 427. Giving up exploration, search or inquiry

         3. 428. Ceasing to work mineral deposits

         4. 429. Buildings etc. for benefit of employees abroad ceasing to be used

         5. 430. Disposal of asset, etc.

         6. 431. Discontinuance of trade

   7. Chapter 7

      Supplementary provisions

      1. 432. Giving effect to allowances and charges

      2. 433. Treatment of demolition costs

      3. 434. Time when expenditure incurred

      4. 435. Shares in assets

      5. 436. Meaning of "development" etc.

6. Part 6

   Research and development allowances

   1. Chapter 1

      Introduction

      1. 437. Research and development allowances

      2. 438. Expenditure on research and development

   2. Chapter 2

      Qualifying expenditure

      1. 439. Qualifying expenditure

      2. 440. Excluded expenditure: land

   3. Chapter 3

      Allowances and charges

      1. 441. Allowances

      2. 442. Balancing charges

      3. 443. Disposal values and disposal events

      4. 444. Disposal events: chargeable period for which disposal value is to be brought into account

      5. 445. Costs of demolition

   4. Chapter 4

      Additional VAT liabilities and rebates

      1. 446. Introduction

      2. 447. Additional VAT liability treated as additional expenditure etc.

      3. 448. Additional VAT rebate generates disposal value

      4. 449. Effect on balancing charges of additional VAT rebates in earlier chargeable periods

   5. Chapter 5

      Supplementary provisions

      1. 450. Giving effect to allowances and charges

      2. 451. Sales: time of cessation of ownership

7. Part 7

   Know-how allowances

   1. Chapter 1

      Introduction

      1. 452. Know-how allowances

      2. 453. Know-how as property

   2. Chapter 2

      Qualifying expenditure

      1. 454. Qualifying expenditure

      2. 455. Excluded expenditure

   3. Chapter 3

      Allowances and charges

      1. 456. Pooling of expenditure

      2. 457. Determination of entitlement or liability

      3. 458. Amount of allowances and charges

      4. 459. Available qualifying expenditure

      5. 460. Allocation of qualifying expenditure to pools

      6. 461. Unrelieved qualifying expenditure

      7. 462. Disposal values

      8. 463. Giving effect to allowances and charges

8. Part 8

   Patent allowances

   1. Chapter 1

      Introduction

      1. 464. Patent allowances

      2. 465. Future patent rights

      3. 466. Grant of licences

   2. Chapter 2

      Qualifying expenditure

      1. 467. Qualifying expenditure

      2. 468. Qualifying trade expenditure

      3. 469. Qualifying non-trade expenditure

   3. Chapter 3

      Allowances and charges

      1. 470. Pooling of expenditure

      2. 471. Determination of entitlement or liability

      3. 472. Amount of allowances and charges

      4. 473. Available qualifying expenditure

      5. 474. Allocation of qualifying expenditure to pools

      6. 475. Unrelieved qualifying expenditure

      7. 476. Disposal value of patent rights

      8. 477. Limit on amount of disposal value

   4. Chapter 4

      Giving effect to allowances and charges

      1. 478. Persons having qualifying trade expenditure

      2. 479. Persons having qualifying non-trade expenditure: income tax

      3. 480. Persons having qualifying non-trade expenditure: corporation tax

   5. Chapter 5

      Supplementary provisions

      1. 481. Anti-avoidance: limit on qualifying expenditure

      2. 482. Sums paid for Crown use etc. treated as paid under licence

      3. 483. Meaning of "income from patents"

9. Part 9

   Dredging allowances

   1. Qualifying expenditure on dredging, etc.

      1. 484. Dredging allowances

      2. 485. Qualifying expenditure

      3. 486. Pre-trading expenditure of qualifying trades, etc.

   2. Writing-down and balancing allowances

      1. 487. Writing-down allowances

      2. 488. Balancing allowances

   3. Giving effect to allowances

      1. 489. Giving effect to allowances

10. Part 10

    Assured tenancy allowances

    1. Chapter 1

       Introduction

       1. 490. Assured tenancy allowances

       2. 491. Allowances available in relation to old expenditure only

       3. 492. Meaning of "approved body"

       4. 493. Expenditure on the construction of a building

    2. Chapter 2

       The relevant interest

       1. Introduction

          1. 494. Introduction

       2. The relevant interest in the building

          1. 495. General rule as to what is the relevant interest in the building

          2. 496. Interest acquired on completion of construction

          3. 497. Effect of creation of subordinate interest

          4. 498. Merger of leasehold interest

          5. 499. Provisions applying on termination of lease

       3. The relevant interest in the dwelling-house

          1. 500. The relevant interest in the dwelling-house

    3. Chapter 3

       Qualifying expenditure

       1. 501. Capital expenditure on construction

       2. 502. Purchase of unused dwelling-house where developer not involved

       3. 503. Purchase of dwelling-house sold unused by developer

    4. Chapter 4

       Qualifying dwelling-houses

       1. 504. Requirements relating to the landlord

       2. 505. Qualifying dwelling-houses: exclusions

       3. 506. Dwelling-house ceasing to be qualifying dwelling-house

    5. Chapter 5

       Writing-down allowances

       1. Entitlement to and calculation of writing-down allowances

          1. 507. Entitlement to writing-down allowance

          2. 508. Basic rule for calculating amount of allowance

          3. 509. Calculation of allowance after sale of relevant interest

          4. 510. Allowance limited to residue of qualifying expenditure attributable to dwelling-house

       2. Interpretation

          1. 511. Qualifying expenditure attributable to dwelling-house

          2. 512. Residue of qualifying expenditure attributable to dwelling-house

    6. Chapter 6

       Balancing adjustments

       1. General

          1. 513. When balancing adjustments are made

          2. 514. Balancing events

          3. 515. Proceeds from balancing events

       2. Calculation of balancing adjustments

          1. 516. Dwelling-house a qualifying dwelling-house throughout

          2. 517. Dwelling-house not a qualifying dwelling-house throughout

          3. 518. Overall limit on balancing charge

          4. 519. Recovery of old initial allowances made on incorrect assumptions

       3. Meaning of "the relevant period of ownership" etc.

          1. 520. The relevant period of ownership

          2. 521. Starting expenditure

          3. 522. Adjusted net cost

    7. Chapter 7

       Writing off qualifying expenditure attributable to dwelling-house

       1. 523. Introduction

       2. 524. Writing off initial allowances

       3. 525. Writing off writing-down allowances

       4. 526. Writing off expenditure for periods when building not used as qualifying dwelling-house

       5. 527. Writing off or increase of expenditure where balancing adjustment made

       6. 528. Treatment of demolition costs

    8. Chapter 8

       Supplementary provisions

       1. 529. Giving effect to allowances and charges

       2. 530. Apportionment of sums partly referable to non-qualifying assets

       3. 531. Meaning of "dwelling-house", "lease" etc.

11. Part 11

    Contributions

    1. Chapter 1

       Exclusion of expenditure met by contributions

       1. Rules excluding contributions

          1. 532. The general rule excluding contributions

          2. 533. Exclusion of contributions to dredging

       2. Exceptions to the general rule excluding contributions

          1. 534. Northern Ireland regional development grants

          2. 535. Insurance or compensation money

          3. 536. Contributions not made by public bodies and not eligible for tax relief

    2. Chapter 2

       Contribution allowances

       1. Contribution allowances under Parts 2 to 5

          1. 537. Conditions for contribution allowances under Parts 2 to 5

          2. 538. Plant and machinery

          3. 539. Industrial buildings

          4. 540. Agricultural buildings

          5. 541. Mineral extraction

       2. Effect of transfers of C's trade on contribution allowances under Parts 3, 4 and 5

          1. 542. Transfer of C's trade or relevant activity

       3. Contribution allowances under Part 9

          1. 543. Contribution allowances under Part 9

12. Part 12

    Supplementary provisions

    1. Chapter 1

       Life assurance business

       1. 544. Management assets

       2. 545. Investment assets

    2. Chapter 2

       Additional VAT liabilities and rebates: interpretation, etc.

       1. 546. Introduction

       2. 547. "Additional VAT liability" and "additional VAT rebate"

       3. 548. Time when additional VAT liability or rebate is incurred or made

       4. 549. Chargeable period in which, and time when, additional VAT liability or rebate accrues

       5. 550. Apportionment of additional VAT liabilities and rebates

       6. 551. Supplementary

    3. Chapter 3

       Disposals of oil licences: provisions relating to Parts 5 and 6

       1. Introduction

          1. 552. Meaning of "oil licence" and "interest in an oil licence"

       2. Oil licences relating to undeveloped areas

          1. 553. Consideration to be treated as nil

          2. 554. Circumstances in which oil licence relates to undeveloped area

       3. Disposal of oil licence with exploitation value

          1. 555. Disposal of oil licence with exploitation value

       4. Minor definitions

          1. 556. Minor definitions

    4. Chapter 4

       Partnerships, successions and transfers

       1. 557. Application of sections 558 and 559

       2. 558. Effect of partnership changes

       3. 559. Effect of successions

       4. 560. Transfer of insurance company business

       5. 561. Transfer of a UK trade to a company in another member State

    5. Chapter 5

       Miscellaneous

       1. Apportionment

          1. 562. Apportionment where property sold together

       2. Procedure for determining certain questions

          1. 563. Procedure for determining certain questions affecting two or more persons

          2. 564. Questions to which procedure in section 563 applies

       3. Tax agreements for income tax purposes

          1. 565. Tax agreements for income tax purposes

       4. Companies not resident in the United Kingdom

          1. 566. Companies not resident in the United Kingdom

       5. Sales treated as being for alternative amount

          1. 567. Sales treated as being for alternative amount: introductory

          2. 568. Sales treated as being at market value

          3. 569. Election to treat sale as being for alternative amount

          4. 570. Elections: supplementary

    6. Chapter 6

       Final provisions

       1. General interpretation

          1. 571. Application of Act to parts of assets

          2. 572. References to sale of property and time of sale

          3. 573. Transfers treated as sales

          4. 574. Meaning of "control"

          5. 575. Connected persons

          6. 576. Meaning of "the Inland Revenue" etc.

          7. 577. Other definitions

       2. Amendments, repeals, citation etc.

          1. 578. Consequential amendments

          2. 579. Commencement and transitional provisions and savings

          3. 580. Repeals

          4. 581. Citation

13. 1. Schedule 1

       Abbreviations and defined expressions

       1. Part 1

          Abbreviations

       2. Part 2

          Defined expressions

    2. Schedule 2

       Consequential amendments

    3. Schedule 3

       Transitionals and savings

       1. Part 1

          Continuity of the law

       2. Part 2

          Changes in the law

       3. Part 3

          General

       4. Part 4

          Plant and machinery allowances

       5. Part 5

          Industrial buildings allowances

       6. Part 6

          Agricultural buildings allowances

       7. Part 7

          Mineral extraction allowances

       8. Part 8

          Research and development allowances

       9. Part 9

          Patent allowances

       10. Part 10

           Dredging allowances

       11. Part 11

           Contributions

       12. Part 12

           Supplemental

       13. Part 13

           Other enactments

    4. Schedule 4

       Repeals