Commentary

B3.406A First year qualifying expenditure

Business tax
Business tax | Commentary

B3.406A First year qualifying expenditure

Business tax | Commentary

B3.406A First year qualifying expenditure

A first year allowance of 100% is given for expenditure incurred after 16 April 2002 if the expenditure is first year qualifying expenditure1.

The basic conditions which must be fulfilled in order for expenditure to qualify as first year qualifying expenditure are that the expenditure must be incurred:

  1.  

    (a)     after 16 April 2002;

  2.  

    (b)     by a company; and

  3.  

    (c)     wholly for the purposes of a ring fence trade2.

Such expenditure qualifies provided that it is not excluded by rules which ensure that:

  1.  

    (a)     expenditure incurred on acquisition of a mineral asset (within the meaning of CAA 2001,

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