Section 416D First-year allowancesF1
A person is entitled to a first-year allowance in respect of first-year qualifying expenditure if the expenditure is incurred in a chargeable period to which this Act applies.
Any first-year allowance is made for the chargeable period in which the first-year qualifying expenditure is incurred.
The amount of the allowance is a percentage of the first-year qualifying expenditure in respect of which the allowance is made, as shown in the Table—
Table
Amount of first-year allowances
| Type of first-year qualifying expenditure | Amount |
|---|---|
| Expenditure qualifying under section 416B (expenditure incurred wholly for the purposes of a ring fence trade) | 100% |
A person who is entitled to a first-year allowance may claim the allowance in respect of the whole or a part of the first-year qualifying expenditure.
This section is subject to section 416E (artificially inflated claims for first-year allowances).
Annotations
Textual amendments
- F1
S. 416D and preceding crossheading inserted (with effect as mentioned in s. 63(3) of the amending Act) by Finance Act 2002 (c. 23), s. 63, Sch. 21 para. 10