Capital Allowances Act 2001 section 66D

SME company leaving NI corporation tax regime

Section 66D deals with the capital allowances consequences when an SME company ceases to be within the Northern Ireland corporation tax regime and ensures a smooth transition without triggering unintended tax charges.

• Applies when a company that was an SME (Northern Ireland employer) company in the previous period is no longer an SME (Northern Ireland employer) company or a NIRE company in the current period, and continues to carry on a qualifying activity
• Assets that continue to be used in the same trade are not treated as having been disposed of simply because they are reclassified from NI rate activity use to ordinary qualifying activity use
• Any unrelieved qualifying expenditure on plant or machinery used for an NI activity that is carried forward into the relevant period is treated as relating to the qualifying activity the company now carries on
• The commencement day referred to in the section is defined by section 5(4) of the Corporation Tax (Northern Ireland) Act 2015