Section 371SM | Capital allowances

(1)This section applies if, before the CFC's first accounting period, the CFC incurred any capital expenditure on the provision of plant or machinery for the purposes of its trade.

(2)For the purposes of Part 2 of CAA 2001 (plant and machinery allowances) assume that the plant or machinery—

(a)was provided for purposes wholly other than those of the trade, and

(b)was not brought into use for the purposes of the trade until the beginning of the CFC's first accounting period,

and that section 13 of CAA 2001 (use for qualifying activity of plant or machinery provided for other purposes) applies accordingly.

(3)In this section references to the CFC's first accounting period are to the CFC's accounting period which begins when it becomes a CFC.

(4)This section is to be read as if it were contained in Part 2 of CAA 2001.