Capital Allowances Act 2001 section 230

Exception for manufacturers and suppliers

Section 230 provides an exception for manufacturers and suppliers from the anti-avoidance restrictions that would otherwise limit the amount of qualifying expenditure on plant and machinery in certain sale and leaseback or similar transactions.

• New, unused plant or machinery sold by its manufacturer or supplier is exempt from the anti-avoidance restrictions on allowances
• The seller's business (or part of it) must be the manufacture or supply of that class of plant or machinery
• The sale or contract must be made in the ordinary course of the seller's business
• The effect is that capital allowances are based on the actual sale price rather than being restricted