Search Legislation

Finance Act 2011

Status:

This is the original version (as it was originally enacted).

11Annual investment allowance

(1)Section 51A of CAA 2001 (entitlement to annual investment allowance) is amended as follows.

(2)In subsection (5) (maximum allowance), for “£100,000” substitute “£25,000”.

(3)In subsection (8) (power to amend maximum allowance), for “other” substitute “greater”.

(4)The amendment made by subsection (2) has effect in relation to expenditure incurred on or after the relevant day.

(5)Subsections (6) and (7) apply in relation to a chargeable period (“the actual chargeable period”) which—

(a)begins before the relevant day, and

(b)ends on or after that day.

(6)The maximum allowance under section 51A of CAA 2001 for the actual chargeable period is the sum of each maximum allowance that would be found if—

(a)the period beginning with the first day of the chargeable period and ending with the day before the relevant day, and

(b)the period beginning with the relevant day and ending with the last day of the chargeable period,

were treated as separate chargeable periods.

(7)But, so far as concerns expenditure incurred on or after the relevant day, the maximum allowance under section 51A of CAA 2001 for the actual chargeable period is the maximum allowance, calculated in accordance with subsection (6), for the period mentioned in paragraph (b) of that subsection.

(8)Subsections (6) and (7) are also to apply for the purpose of determining the maximum allowance under section 51K of CAA 2001 (operation of annual investment allowance where restrictions apply) in a case where one or more chargeable periods in which the relevant AIA qualifying expenditure is incurred are chargeable periods within subsection (5), but the modifications in subsections (9) to (11) are to apply.

(9)There is to be taken into account for the purpose mentioned in subsection (8) only chargeable periods of one year or less (whether or not they are chargeable periods within subsection (5)), and if there is more than one such period, only that period which gives rise to the greatest maximum allowance.

(10)For the purposes of subsection (9) any chargeable period—

(a)which is longer than a year, and

(b)which ends in the tax year 2012-13,

is to be treated as being a chargeable period of one year ending at the same time as it actually ends.

(11)The limit in section 51K(6) of CAA 2001 in relation to a chargeable period (“the chargeable period concerned”) is to be treated as reduced (but not below nil) by the amount of the annual investment allowance allocated to relevant AIA qualifying expenditure incurred in any other chargeable period which ends on or after the last day of the chargeable period concerned.

(12)Nothing in subsections (8) to (11) affects the operation of sections 51M and 51N of that Act.

(13)In this section “the relevant day” means—

(a)for corporation tax purposes, 1 April 2012, and

(b)for income tax purposes, 6 April 2012.

Back to top

Options/Help

Print Options

You have chosen to open The Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open The Whole Act as a PDF

The Whole Act you have selected contains over 200 provisions and might take some time to download.

Would you like to continue?

You have chosen to open the Whole Act

The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

You have chosen to open Schedules only

The Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.

Would you like to continue?

Close

Legislation is available in different versions:

Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.

Original (As Enacted or Made):The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.

Close

Opening Options

Different options to open legislation in order to view more content on screen at once

Close

More Resources

Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • correction slips
  • links to related legislation and further information resources
Close

More Resources

Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:

  • the original print PDF of the as enacted version that was used for the print copy
  • correction slips

Click 'View More' or select 'More Resources' tab for additional information including:

  • lists of changes made by and/or affecting this legislation item
  • confers power and blanket amendment details
  • all formats of all associated documents
  • links to related legislation and further information resources