Capital Allowances Act 2001 section 212B

Where Chapter applies

Section 212B sets out the conditions that must all be met for the anti-avoidance rules on allowance buying (Chapter 16A) to apply.

• The chapter targets situations where a company (or partnership) undergoes a change of ownership or structure and seeks to exploit existing capital allowances — a practice known as "allowance buying"
• Four conditions must all be satisfied: the company carries on a qualifying activity, there is a qualifying change on a particular day, there is a relevant excess of allowances, and one of the limiting conditions is met
• The rules apply whether the qualifying activity is carried on by the company alone or in partnership with others
• Where the chapter does apply, further provisions determine how allowances are restricted and how accounting periods are affected