Capital Allowances Act 2001 section 89

Expenditure incurred partly on research and development

Section 89 of Schedule 3 provides a transitional rule disapplying the apportionment rule in section 439(4) for expenditure incurred before 27 July 1989.

• Section 439(4) allows apportionment where expenditure is only partly for research and development purposes.
• This apportionment rule does not apply to expenditure incurred before 27 July 1989.
• For pre-27 July 1989 expenditure, the older treatment applies — no statutory basis for splitting mixed-purpose spending between R&D and non-R&D elements.
• This is a transitional provision preserving the position that existed before the apportionment rule was introduced.