Part 11

Contributions
Chapter 2

Contribution allowances

Contribution allowances under Parts 2, 2A, 3, 4 and 5

Plant and machinery
538
1
This section is about contribution allowances under Part 2 and applies if—
a
the general conditions for contribution allowances are met, ...
aa
C's contribution is to expenditure on the provision of plant or machinery, and
b
C’s contribution is made for the purposes of a trade or relevant activity carried on, or to be carried on, by C.
2
C is to be treated for the purposes of allowances under Part 2 as if—
a
the contribution were expenditure incurred by C on the provision, for the purposes of C’s trade or relevant activity, of the plant or machinery,
b
C owned the plant or machinery as a result of incurring that expenditure at any time when R owns it or is treated under Part 2 as owning it, and
c
the plant or machinery were at all material times plant or machinery in use for the purposes of C’s trade or relevant activity.
3
Expenditure treated as incurred under subsection (2)(a), if allocated to any pool, must be allocated to a single asset pool.
4
Subsections (5) and (6) apply for the purposes of contribution allowances under Part 2 if the whole or a part of the trade or relevant activity for the purposes of which C’s contribution was made is transferred.
5
If the whole of the trade or relevant activity is transferred, writing-down allowances for chargeable periods ending after the date of the transfer are to be made to the transferee instead of to the transferor.
6
If a part of the trade or relevant activity is transferred, writing-down allowances for chargeable periods ending after the date of the transfer are to be made to the transferee instead of to the transferor to the extent that they are properly referable to the part transferred.
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
Words in s. 537(1) cross-heading substituted (with effect in accordance with s. 92 of the amending Act) by Finance Act 2005 (c. 7), Sch. 6 para. 5; S.I. 2007/949, art. 2
Word in s. 538(1)(a) omitted (with effect in accordance with s. 73(4)-(6) of the amending Act) by virtue of Finance Act 2013 (c. 29), s. 73(2)
S. 538(1)(aa) inserted (with effect in accordance with s. 73(4)-(6) of the amending Act) by Finance Act 2013 (c. 29), s. 73(2)
Words in s. 538(2)(a) substituted (with effect in accordance with s. 73(4)-(6) of the amending Act) by Finance Act 2013 (c. 29), s. 73(3)(a)
Words in s. 538(2)(b) substituted (with effect in accordance with s. 73(4)-(6) of the amending Act) by Finance Act 2013 (c. 29), s. 73(3)(b)
Words in s. 538(2)(c) substituted (with effect in accordance with s. 73(4)-(6) of the amending Act) by Finance Act 2013 (c. 29), s. 73(3)(c)(i)
Words in s. 538(2)(c) substituted (with effect in accordance with s. 73(4)-(6) of the amending Act) by Finance Act 2013 (c. 29), s. 73(3)(c)(ii)
Word in s. 537 cross-heading inserted (5.7.2019) by The Capital Allowances (Structures and Buildings Allowances) Regulations 2019 (S.I. 2019/1087), regs. 1, 3(10)(d)