Capital Allowances Act 2001 Schedule 3 paragraph 42

Effect of significant reduction in use for purposes of qualifying activity

Paragraph 42 of Schedule 3 provides a transitional rule that disapplies section 208 (which deals with significant reductions in qualifying use of an asset) where the relevant change of circumstances occurred before 21st March 2000.

• Section 208 addresses the consequences when there is a significant reduction in the use of an asset for the purposes of a qualifying activity
• This transitional provision disapplies section 208 where the change of circumstances triggering it occurred before 21st March 2000
• If the relevant change happened on or after 21st March 2000, section 208 applies in the normal way
• The provision ensures that pre-existing situations are not retrospectively caught by the rules on reduced qualifying use