Capital Allowances Act 2001 section 187

Fixture on which research and development allowance has been made

Schedule 3, paragraph 40 provides a transitional rule disapplying the restriction in section 187 where the relevant disposal event occurred before 24th July 1996.

• Section 187 restricts the qualifying expenditure a new owner can claim on a fixture where a research and development allowance was previously made.
• This transitional rule disapplies section 187 entirely if the relevant disposal event took place before 24th July 1996.
• Where the disposal occurred before that date, the normal restriction on qualifying expenditure does not apply, and the new owner is not limited by the previous research and development allowance.
• For disposal events on or after 24th July 1996, section 187 applies in full and the usual cap on qualifying expenditure is in effect.