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

This section applies if—

If the new expenditure exceeds the maximum allowable amount, the excess is to be left out of account in determining the current owner’s qualifying expenditure.

The maximum allowable amount is—

where—

• F is the part of the consideration for the disposal of the Part 6 asset by the past owner that is attributable to the fixture,

• T is the total consideration for that disposal, and

• A is an amount equal to whichever is the smaller of—

  1. (a)

     the disposal value of the Part 6 asset when the past owner ceased to own it, and

  2. (b)

     so much of the Part 6 expenditure as related to the provision of the Part 6 asset.

For the purposes of this section the current owner of the plant or machinery is—