Part 3Capital allowances
Plant and machinery: first-year allowances
75First-year allowance for small and medium-sized enterprises discontinued
1
CAA 2001 is amended as follows.
2
Omit section 44 (expenditure incurred by small or medium-sized enterprises).
3
In consequence of the repeal made by subsection (2)—
a
in the list in section 39 (provisions under which first-year allowances available), omit the entry relating to section 44,
b
in the list in section 46(1) (provisions subject to general exclusions), omit the entry relating to section 44,
c
omit sections 47 to 49 (definition of small and medium-sized enterprises), and
d
in section 52(3) (first-year allowances) omit—
i
in the table, the entry relating to expenditure qualifying under section 44, and
ii
the words from “In the case” to the end.
4
Omit the following provisions (which relate to provisions repealed by subsection (3))—
a
section 142 of FA 2004 (increase in first-year allowance under section 44 for 2004),
b
section 30 of FA 2006 (increase in first-year allowance under section 44 for 2006), and
c
section 37 of FA 2007 (increase in first-year allowance under section 44 for 2007).
5
The repeals made by subsections (2) and (3) have effect in relation to expenditure incurred on or after the relevant date.
6
But subsection (7) applies in relation to an additional VAT liability incurred on or after the relevant date which under section 235 of CAA 2001 is treated as qualifying expenditure.
7
If the original expenditure (within the meaning of that section) was first-year qualifying expenditure by virtue of section 44 of CAA 2001, Chapter 18 of Part 2 of that Act (additional VAT liabilities and rebates) applies to the additional VAT liability as if the provisions repealed by this section were not so repealed.
8
The relevant date is—
a
for corporation tax purposes, 1 April 2008, and
b
for income tax purposes, 6 April 2008.