# Finance Act 2002, 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).”.

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Source: https://www.legislation.gov.uk/ukpga/2002/23/schedule/21/paragraph/10 (the official version)
Page: https://openlegislation.uk/finance-act-2002/schedule-21/paragraph-10
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.