Capital Allowances Act 2001

[F1416ZDRestriction on allowance availableU.K.

(1)In determining how much of the consideration for the service is qualifying expenditure, there is to be left out of account the amount (if any) by which that consideration exceeds D.

(2)D is the cost to S of providing the service or, if the qualifying expenditure relates to only part of the service, that part.

(3)Subsection (2) is subject to—

(a)subsection (4), and

(b)section 416ZE,

which provide for D to be calculated differently in certain circumstances.

(4)The following provisions apply in relation to an amount restricted under subsection (1) as they apply in relation to an amount restricted under section 165B(1)—

(a)section 165C;

(b)section 165E, subject to the modifications in subsection (5).

(5)The modifications are that—

(a)the references to Part 2 are to be read as references to this Part,

(b)in subsection (1)(c), the reference to decommissioning expenditure is to be read as a reference to qualifying expenditure under section 416ZA, and

(c)in subsection (5), the reference to R's available qualifying expenditure is to be read as a reference to R's qualifying expenditure on the restoration of the site.

(6)But if, under the arrangement, a particular service or part of a service is provided by more than one person who is connected with R (so that without this subsection there would be more than one amount for D in relation to that service or part), D is the lowest of those amounts.]