Section 416D | First-year allowances ^F1

From legislation.gov.uk

(1)A person is entitled to a first-year allowance in respect of first-year qualifying expenditure if the expenditure is incurred in a chargeable period to which this Act applies.^F1

(2)Any first-year allowance is made for the chargeable period in which the first-year qualifying expenditure is incurred.^F1

(3)The amount of the allowance is a percentage of the first-year qualifying expenditure in respect of which the allowance is made, as shown in the Table—^F1

Table
Type of first-year qualifying expenditure	Amount
Expenditure qualifying under section 416B (expenditure incurred wholly for the purposes of a ring fence trade)	100%

(4)A person who is entitled to a first-year allowance may claim the allowance in respect of the whole or a part of the first-year qualifying expenditure.^F1

(5)This section is subject to section 416E (artificially inflated claims for first-year allowances).^F1