{
  "url": "https://openlegislation.uk/finance-act-1980/schedule-17/paragraph-16",
  "json_url": "https://openlegislation.uk/finance-act-1980/schedule-17/paragraph-16.json",
  "legislation": "ukpga/1980/48",
  "legislation_title": "Finance Act 1980",
  "legislation_url": "https://openlegislation.uk/finance-act-1980",
  "path": "schedule/17/paragraph/16",
  "kind": "paragraph",
  "number": "16",
  "heading": null,
  "text": "(1) Subject to sub-paragraph (2) below, there shall be allowed under section 5 in the case of the new participator, in connection with any field in which an interest is transferred to him by the old participator, any expenditure incurred—\n(a) by the old participator; or\n(b) if the old participator is a company, by a company which is within the meaning of that section associated with the old participator in respect of the expenditure,\nif no claim in respect of it has been made under Schedule 7 by the old participator or any such company and the expenditure would be allowable under that section in the case of the new participator if he had himself incurred it.\n(2) Sub-paragraph (1) above—\n(a) does not apply so long as the old participator or, if the old participator is a company, any company associated with the old participator has an interest in a licence; and\n(b) applies to the new participator only if the transfer to him was the last transfer made by the old participator.\n(3) For the purposes of sub-paragraph (2) above a company is associated with the old participator if—\n(a) one is a 51 per cent. subsidiary of the other and the other is not a 51 per cent. subsidiary of any company; or\n(b) each of them is a 51 per cent. subsidiary of a third company which is not itself a 51 per cent. subsidiary of any company;\nand Chapter 3 of Part 24 of the Corporation Tax Act 2010 (subsidiaries) shall apply for the purposes of this sub-paragraph.\n(4) This paragraph is without prejudice to the application of section 5 in cases where the old participator is a company and the new participator is within the meaning of that section a company associated with the old participator in respect of the expenditure in question.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in Sch. 17 para. 16(3) substituted (with effect in accordance with s. 1184(1) of the commencing Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 172(3) (with Sch. 2)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/1980/48/schedule/17/paragraph/16",
    "retrieved_at": "2026-10-29T10:15:13.396678+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."
}