Part 2 Plant and machinery allowances

Chapter 5 Allowances and charges

F1Effect of changes in Northern Ireland status of SME company or SME partnership

66DSME company leaving NI corporation tax regime

(1)

This section applies if—

(a)

in a chargeable period beginning after the commencement day (“the relevant period”) a company is neither F2an SME (Northern Ireland employer) company nor a NIRE company,

(b)

the company was F3an SME (Northern Ireland employer) company in the previous chargeable period, and

(c)

during the relevant period the company carries on a qualifying activity.

(2)

The fact that assets which continue to be used in the relevant period for the purposes of the trade actually carried on are as a result of section 15(2ZA) treated as ceasing to be used for the purposes of an NI rate activity and beginning to be used for the purposes of the qualifying activity mentioned in subsection (1)(c) does not give rise to a disposal event within 61(1)(e) or (f).

(3)

Any unrelieved qualifying expenditure which—

(a)

relates to plant or machinery used for the purposes of an NI activity, and

(b)

falls to be carried forward to the relevant period,

is to be treated as relating to the qualifying activity that the company carries on in the relevant period.

(4)

“The commencement day” has the meaning given by section 5(4) of the Corporation Tax (Northern Ireland) Act 2015.