Part 2Plant and machinery allowances
Chapter 17Anti-avoidance
Restrictions on allowances
218Restriction on B’s qualifying expenditure
(1)
If this section applies as a result of section 214, 215 or 216, the amount, if any, by which B’s expenditure under the relevant transaction exceeds D is to be left out of account in determining B’s available qualifying expenditure.
D is defined in subsections (2) and (3).
(2)
If S is required to bring a disposal value into account under this Part because of the relevant transaction, D is that disposal value.
(3)
If S is not required to bring a disposal value into account under this Part because of the relevant transaction, D is whichever of the following is the smallest—
(a)
the market value of the plant or machinery;
(b)
if S incurred capital expenditure on the provision of the plant or machinery, the amount of that expenditure;
(c)
if a person connected with S incurred capital expenditure on the provision of the plant or machinery, the amount of that expenditure.
(4)
If plant or machinery is the subject of a sale and finance leaseback (as defined in section 221), section 224 or 225 applies instead of this section.