http://www.legislation.gov.uk/ukpga/2001/2/section/220/2009-07-21Capital Allowances Act 2001An Act to restate, with minor changes, certain enactments relating to capital allowances.2001-04-05texttext/xmlenStatute Law Database2026-05-01Expert Participation2009-07-21 Capital Allowances Act 2001s. 774E(5)(b)Finance Act 2008Sch. 20 para. 12(11)Capital Allowances Act 2001s. 29(1A)The Fire and Rescue Services (Northern Ireland) Order 2006Sch. 3 para. 24(b)art. 1(3)art. 2 Part 2Chapter 17220A1Subsection (1) applies to a company for a chargeable period if—aat the end of the ICTA period of account which is the basis period for the chargeable period, the company is a member of a group, andbthe last day of that ICTA period of account is not also the last day of an ICTA period of account of the principal company of the group.1Subject to subsection (2), if the company incurs at any time in the chargeable period capital expenditure on the provision of plant or machinery for leasing under a finance lease or under a qualifying operating lease (see subsection (4)) —athe part of the expenditure which is proportional to the part of that chargeable period falling before that time is not to be taken into account in determining that company's available qualifying expenditure for that period, butbthis does not prevent that part of the expenditure being taken into account in determining that company's available qualifying expenditure for any subsequent chargeable period.2Subsection (1)(a) does not apply to a chargeable period if a disposal event occurs in that period in respect of the plant or machinery.3The following provisions have effect for the interpretation of this section.4A “qualifying operating lease” is a plant or machinery lease that meets the following conditions—ait is not a finance lease,bit is a funding lease,cits term is longer than 4 years but not longer than 5 years.5An ICTA period of account is the basis period for a chargeable period if the chargeable period coincides with, or falls within, the ICTA period of account.6An “ICTA period of account” is a period of account as defined in section 832(1) of ICTA.7The provisions of section 170(3) to (6) of TCGA 1992 apply to determine for the purposes of this section—awhether a company is member of a group, andbwhich company is the principal company of the group.8But, in applying those provisions for the purposes of this section, a company (“the subsidiary company”) that does not have ordinary share capital is to be treated as being a qualifying 75% subsidiary of another company (“the parent company”) if the parent company—ahas control of the subsidiary company..., andbis beneficially entitled to the appropriate proportion of profits and assets.9The parent company is beneficially entitled to the appropriate proportion of profits and assets if (and only if) it—ais beneficially entitled to at least 75% of any profits available for distribution to equity holders of the subsidiary company, andbwould be beneficially entitled to at least 75% of any assets of the subsidiary company available for distribution to its equity holders on a winding-up.10The provisions of Schedule 18 to ICTA (equity holders and profits or assets etc) also apply for the purposes of this section.11In this section, the following expressions have the same meaning as in Chapter 6A of Part 2 (interpretation of provisions about long funding leases)—“funding lease”,“plant or machinery lease”,“term”, in relation to a lease.Pt. 2 modified (24.2.2003) by Proceeds of Crime Act 2002 (c. 29), s. 458(1), Sch. 10 para. 12 (with Sch. 10 para. 17(1)); S.I. 2003/120, art. 2, Sch. (with arts. 3 4) (as amended (20.2.2003) by S.I. 2003/333, art. 14) S. 45H(2) modified (with effect in accordance with s. 167 of the amending Act) by Finance Act 2003 (c. 14) , Sch. 30 para. 7 Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 4 para. 4 ; S.I. 2004/2575 , art. 2(1) , Sch. 1 Pt. 2 modified (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 9(2), 21(2) (with s. 38(2)); S.I. 2004/2575, art. 2(1) , Sch. 1 Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 10, 22 (with s. 38(2) ); S.I. 2004/2575 , art. 2(1) , Sch. 1 S. 219 cross-heading substituted (with effect in accordance with Sch. 9 para. 15(6) of the amending Act) by Finance Act 2006 (c. 25), Sch. 9 para. 15(5)S. 220(A1) inserted (with effect in accordance with Sch. 9 para. 15(6) of the amending Act) by Finance Act 2006 (c. 25), Sch. 9 para. 15(2)S. 220(3)-(11) inserted (with effect in accordance with Sch. 9 para. 15(6) of the amending Act) by Finance Act 2006 (c. 25), Sch. 9 para. 15(4)Words in s. 220(1) substituted (with effect in accordance with Sch. 9 para. 15(6) of the amending Act) by Finance Act 2006 (c. 25), Sch. 9 para. 15(3)(a)Words in s. 220(1) substituted (with effect in accordance with Sch. 9 para. 15(6) of the amending Act) by Finance Act 2006 (c. 25), Sch. 9 para. 15(3)(b)Words in s. 220(1) inserted (with effect in accordance with Sch. 9 para. 15(6) of the amending Act) by Finance Act 2006 (c. 25), Sch. 9 para. 15(3)(c)Word in s. 220(1) substituted (with effect in accordance with Sch. 9 para. 15(6) of the amending Act) by Finance Act 2006 (c. 25), Sch. 9 para. 15(3)(d)Words in s. 220(8)(a) omitted (6.4.2007) by virtue of Income Tax Act 2007 (c. 3), s. 1034(1), Sch. 1 para. 402, Sch. 3 Pt. 1 (with Sch. 2)Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 19Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 35Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 paras. 36, 37Pt. 2 modified (21.7.2009) by Finance Act 2009 (c. 10), s. 24