Section 297 | Relief for expenditure incurred by a participator in meeting defaulter's abandonment expenditure

(1)Relief by way of capital allowance, or a deduction in calculating ring fence income, is to be available to the contributing participator in respect of the additional abandonment expenditure if any such relief or deduction would have been available to the defaulter if—

(a)the defaulter had incurred the additional abandonment expenditure, and

(b)at the time that that expenditure was incurred the defaulter continued to carry on a ring fence trade.

(2)The basis of qualification for or entitlement to any relief or deduction which is available to the contributing participator under this section is to be determined on the assumption that the conditions in subsection (1)(a) and (b) are met.

(3)But, subject to subsection (2), any such relief or deduction is to be available in the same way as if the additional abandonment expenditure had been incurred by the contributing participator for the purposes of the ring fence trade carried on by the contributing participator.