Capital Allowances Act 2001

[F1347 Additional VAT liabilities and writing-down allowancesU.K.

(1)This section applies if the person entitled to the relevant interest in relation to qualifying expenditure incurs an additional VAT liability in respect of that expenditure.

(2)If this section applies—

(a)the additional VAT liability is treated as qualifying expenditure, and

(b)the amount of the residue of qualifying expenditure is accordingly increased at the time when the liability accrues by the amount of the liability.

(3)The incurring of the additional VAT liability is a relevant event for the purposes of section 311 (calculation of writing-down allowances) that is to be treated as occurring at the time when the liability accrues.]