Paragraph 10 First-year allowances

At the beginning of Chapter 6 (allowances and charges) insert—

“

First-year allowances

First-year allowances

416D

(1)

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.

(2)

Any first-year allowance is made for the chargeable period in which the first-year qualifying expenditure is incurred.

(3)

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%

(4)

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.

(5)

This section is subject to section 416E (artificially inflated claims for first-year allowances).”.