Capital Allowances Act 2001 section 534

Northern Ireland regional development grants

Section 534 creates an exception to the general rule that expenditure met by someone else's contribution cannot qualify for capital allowances, specifically for Northern Ireland regional development grants.

• Expenditure funded by a Northern Ireland regional development grant (one declared by the Treasury to correspond to a grant under Part II of the Industrial Development Act 1982) can still qualify for capital allowances, overriding the normal exclusion rule in section 532.
• This exception does not apply where the grant has already been "netted off" against expenditure for petroleum revenue tax (PRT) purposes under paragraph 8 of Schedule 3 to the Oil Taxation Act 1975 — in that case, no capital allowances are available on the grant-funded expenditure.
• Where only part of the grant-funded expenditure would have qualified for PRT relief (but for the netting-off rule), only that corresponding proportion loses the benefit of this exception — the remainder can still qualify for capital allowances.
• The term "Northern Ireland legislation" covers Acts of the Northern Ireland Assembly as well as earlier Northern Ireland statutes, as defined by the Interpretation Act 1978 and amended by the Northern Ireland Act 1998.