What is the purpose of section 212D of the Capital Allowances Act 2001?

Section 212D is a navigational provision that does not itself create any rules or obligations. It directs readers to the five supporting sections (212E to 212I) that define the terminology and concepts needed to apply the qualifying change test in section 212C, which determines whether a change in company ownership triggers anti-avoidance rules on allowance buying.

Which sections does section 212D direct the reader to and what do they cover?

Section 212D directs readers to five sections: 212E defines principal companies and consortium principal companies; 212F explains consortium ownership; 212G defines qualifying 75% subsidiary; 212H defines ownership proportion used to measure consortium ownership changes; and 212I defines relevant percentage share determining the extent to which allowances may be restricted.

How do sections 212H and 212I relate to the qualifying change test under section 212C?

Section 212H explains ownership proportion in the context of section 212C(3), measuring the level of consortium members' ownership in company C and whether it has changed sufficiently to constitute a qualifying change. Section 212I explains relevant percentage share under section 212C(5), determining the proportion by which capital allowances may need to be restricted following a qualifying change.

How would an adviser use section 212D in practice when assessing a change in company ownership?

An adviser would first consult section 212C to understand the qualifying change test, then use section 212D as a guide to navigate supporting definitions. For a consortium-owned company, the adviser would check sections 212E and 212F for principal company and consortium status, 212G for subsidiary conditions, 212H to calculate ownership proportions, and 212I for the relevant percentage share restricting allowances.

Capital Allowances Act 2001 section 212D

Guide to sections explaining section 212C

Section 212D acts as a roadmap to the supporting sections that define the key terms and concepts used in the qualifying change rules of section 212C.

Section 212E defines what principal companies and consortium principal companies are in relation to company C
Sections 212F and 212G explain consortium ownership and the meaning of "qualifying 75% subsidiary"
Section 212H defines "ownership proportion", which is used to measure changes in consortium ownership of company C
Section 212I defines "relevant percentage share", which determines the extent to which allowances may be restricted

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