205 Reduction of [F1annual investment allowance and] first-year allowancesU.K.
(1)If it appears that a person carrying on a qualifying activity has incurred expenditure on the provision of plant or machinery—
(a)partly for the purposes of the qualifying activity, and
(b)partly for other purposes,
any [F2annual investment allowance or] first-year allowance to which he is entitled in respect of the expenditure must be reduced to an amount which is just and reasonable having regard to the relevant circumstances.
(2)The relevant circumstances include, in particular, the extent to which it appears that the plant or machinery is likely to be used for purposes other than those of the qualifying activity in question.
(3)In calculating for the purposes of section 58 the balance left after deducting a first-year allowance, a reduction under subsection (1) is to be disregarded.
Textual Amendments
F1Words in s. 205 heading inserted (with effect in accordance with Sch. 24 para. 23 of the amending Act) by Finance Act 2008 (c. 9), Sch. 24 para. 6(3)
F2Words in s. 205(1) inserted (with effect in accordance with Sch. 24 para. 23 of the amending Act) by Finance Act 2008 (c. 9), Sch. 24 para. 6(2)