Part 2 Plant and machinery allowances

Chapter 18 Additional VAT liabilities and rebates

Anti-avoidance

241 No F1annual investment allowance or first-year allowance in respect of additional VAT liability

(1)

This section applies if—

(a)

one person (“B”) enters into a transaction with another person (“S”) which is a relevant transaction for the purposes of Chapter 17 (anti-avoidance), and

(b)

F2an annual investment allowance or a first-year allowance in respect of B’s expenditure under the relevant transaction is prohibited by section 217(1)F3....

(2)

F4No annual investment allowance or first-year allowance is to be made in respect of any additional VAT liability incurred by B in respect of his expenditure under the relevant transaction.

(3)

Any F5annual investment allowance or first-year allowance which is prohibited by subsection (2), but which has already been made, is to be withdrawn.