Section 356HA | Reduction of allowance if equity disposed of

From legislation.gov.uk

(1)The following amount is to be deducted, in accordance with section 356GD(1), in calculating the total amount of unactivated allowance attributable to a reference period and a site—

Formula

F \times \frac{E1 - E2}{E1}

where—

F is the pre-transfer total of unactivated allowance for the reference period that ends with the day on which the disposal is made;

E1 is the transferor's share of the equity in the licensed area immediately before the disposal;

E2 is the transferor's share of the equity in the licensed area immediately after the disposal.

(2)The “pre-transfer total of unactivated allowance” for a reference period is—

Formula

P + Q

where P and Q are the same as in section 356GD.