{
  "url": "https://openlegislation.uk/capital-allowances-act-2001/section-416B",
  "json_url": "https://openlegislation.uk/capital-allowances-act-2001/section-416B.json",
  "legislation": "ukpga/2001/2",
  "legislation_title": "Capital Allowances Act 2001",
  "legislation_url": "https://openlegislation.uk/capital-allowances-act-2001",
  "path": "section/416B",
  "kind": "section",
  "number": "416B",
  "heading": "Expenditure incurred by company for purposes of a ring fence trade",
  "text": "(1) Expenditure is first-year qualifying expenditure if—\n(a) it is incurred on or after 17th April 2002,\n(b) it is incurred by a company,\n(c) it is incurred wholly for the purposes of a ring fence trade, and\n(d) it is not excluded by—\n(i) subsection (2) (acquisition of mineral asset), or\n(ii) subsection (3) (acquisition of asset representing expenditure of connected company).\n(2) Expenditure is not first-year qualifying expenditure under this section if it is expenditure on acquiring a mineral asset (within the meaning of section 403).\n(3) Expenditure is not first-year qualifying expenditure under this section if it is expenditure incurred by a company on the acquisition of an asset representing expenditure incurred by a company connected with that company.\n(4) To the extent that references in this section to an asset representing expenditure incurred by a company include a reference to an asset representing expenditure on mineral exploration and access, they also include a reference to any results obtained from any search, exploration or inquiry on which any such expenditure was incurred.\n(5) In this section “ ring fence trade ” means a ring fence trade in respect of which tax is chargeable under section 330(1) of CTA 2010 (supplementary charge in respect of ring fence trades).",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Pt. 5 Ch. 5A inserted (with effect as mentioned in s. 63 of the amending Act) by Finance Act 2002 (c. 23), s. 63, Sch. 21 para. 9"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Words in s. 416B(2) inserted (with effect in accordance with s. 92(10) of the amending Act) by Finance Act 2013 (c. 29), s. 92(6)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in s. 416B(5) substituted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 355 (with Sch. 2)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2001/2/section/416B",
    "retrieved_at": "2026-10-29T09:20:17.739129+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}