# Capital Allowances Act 2001, Section 212LA: Limiting conditions


(1) The qualifying change meets one of the limiting conditions if condition A, B, C or D is met.
(2) Condition A is that the amount of the relevant excess of allowances is £50 million or more.
(3) Condition B is that the amount of the relevant excess of allowances—
(a) is £2 million or more but less than £50 million, and
(b) is not insignificant as a proportion of the total amount or value of the benefits derived by any relevant person by virtue of the qualifying change or change arrangements.
(4) “Relevant person” means a person who, at the end of the relevant day, is—
(a) a principal company of C,
(b) a person carrying on the relevant activity in partnership, or
(c) a person who is connected to a person within paragraph (a) or (b) (within the meaning of section 1122 of CTA 2010).
(5) Condition C is that—
(a) the amount of the relevant excess of allowances is less than £2 million, and
(b) the qualifying change has an unallowable purpose.
See section 212M for the meaning of “unallowable purpose”.
(6) Condition D is that the main purpose, or one of the main purposes, of any arrangements is to procure that condition A or B or paragraph (a) of condition C is not met.
(7) In this section—
the amount of the relevant excess of allowances is the difference between RTWDV and BSV (see sections 212K and 212L);
“change arrangements” and “arrangements” have the same meaning as in section 212M.

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Source: https://www.legislation.gov.uk/ukpga/2001/2/section/212LA (the official version)
Page: https://openlegislation.uk/capital-allowances-act-2001/section-212LA
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.