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Capital Allowances Act 2001

Capital Allowances Act 2001 s 416E

s 416E Artificially inflated claims for first-year allowances

(1) To the extent that a transaction is attributable to arrangements entered into wholly or mainly for a disqualifying purpose, it shall be disregarded in determining for a chargeable period the amount of any first-year allowance to which a person is entitled. (2) For the purposes of this section, arrangements are entered into wholly or mainly for a “ disqualifying purpose ” if their main object, or one of their main objects, is to enable a person to obtain— (a) a first-year allowance to which he would not otherwise be entitled, or (b) a first-year allowance of a greater amount than that to which he would otherwise be entitled. (3) In this section “ arrangements ” includes any scheme, agreement or understanding, whether or not legally enforceable.

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