# Capital Allowances Act 2001, Section 241: No annual investment allowance or first-year allowance in respect of additional VAT liability

Extent: E+W+S+N.I.

(1) This section applies if—
(a) one person (“B”) enters into a transaction with another person (“S”) which is a relevant transaction for the purposes of Chapter 17 (anti-avoidance), and
(b) an annual investment allowance or a first-year allowance in respect of B’s expenditure under the relevant transaction is prohibited by section 217(1)....
(2) No annual investment allowance or first-year allowance is to be made in respect of any additional VAT liability incurred by B in respect of his expenditure under the relevant transaction.
(3) Any annual investment allowance or first-year allowance which is prohibited by subsection (2), but which has already been made, is to be withdrawn.

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Source: https://www.legislation.gov.uk/ukpga/2001/2/section/241 (the official version)
Page: https://openlegislation.uk/capital-allowances-act-2001/section-241
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.