Section 218ZA | Restrictions on writing-down allowances: section 215 ^F1

(1)If this subsection applies as a result of section 215, all or part of B's expenditure under the relevant transaction is to be left out of account in determining B's available qualifying expenditure.^F1

(2)The amount of expenditure to be left out of account is—^F1

(a)such amount as would or would in effect cancel out the tax advantage mentioned in section 215 (whether that advantage is obtained by B or another person and whether it relates to the relevant transaction or something else), or^F1

(b)if the amount found under paragraph (a) exceeds the whole of B's expenditure under the relevant transaction, the whole of that expenditure.^F1

(3)But if subsection (1) applies as a result of section 215 and—^F1

(a)section 218 also applies as a result of section 214 or 216, or^F1

(b)section 228 also applies by virtue of an election under section 70I(11) or 227,^F1

the amount of expenditure to be left out of account is the greater of X and Y.

(4)For the purposes of subsection (3)—^F1

“X” is the amount found under subsection (2), and

“Y” is the amount by which B's expenditure under the relevant transaction exceeds D (as defined in section 218 or, as the case may be, section 228).

(5)If this subsection applies as a result of section 215—^F1

(a)the allowance mentioned in subsection (7)(a) of that section is to be calculated using the rate that would be used without the tax advantage, or (as the case may be)^F1

(b)the entitlement mentioned in subsection (7)(b) of that section is to be available as and when it would be available without the tax advantage.^F1

(6)Subsection (5) applies whether or not section 218 also applies as a result of section 214 or 216, or section 228 also applies by virtue of an election under section 70I(11) or 227.^F1