# Capital Allowances Act 2001, Section 416E: Artificially inflated claims for first-year allowances


(1) To the extent that a transaction is attributable to arrangements entered into wholly or mainly for a disqualifying purpose, it shall be disregarded in determining for a chargeable period the amount of any first-year allowance to which a person is entitled.
(2) For the purposes of this section, arrangements are entered into wholly or mainly for a “ disqualifying purpose ” if their main object, or one of their main objects, is to enable a person to obtain—
(a) a first-year allowance to which he would not otherwise be entitled, or
(b) a first-year allowance of a greater amount than that to which he would otherwise be entitled.
(3) In this section “ arrangements ” includes any scheme, agreement or understanding, whether or not legally enforceable.

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Source: https://www.legislation.gov.uk/ukpga/2001/2/section/416E (the official version)
Page: https://openlegislation.uk/capital-allowances-act-2001/section-416E
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.