Section 75 — Finance Act 2008: First-year allowance for small and medium-sized enterprises discontinued

First-year allowance for small and medium-sized enterprises discontinued 75 1 CAA 2001 is amended as follows.

2 Omit section 44 (expenditure incurred by small or medium-sized enterprises).

3 In consequence of the repeal made by subsection (2)—

a in the list in section 39 (provisions under which first-year allowances available), omit the entry relating to section 44, b in the list in section 46(1) (provisions subject to general exclusions), omit the entry relating to section 44, c omit sections 47 to 49 (definition of small and medium-sized enterprises),

and d in section 52(3) (first-year allowances) omit—

i in the table, the entry relating to expenditure qualifying under section 44, and ii the words from “In the case” to the end.

4 Omit the following provisions (which relate to provisions repealed by subsection (3))—

a section 142 of FA 2004 (increase in first-year allowance under section 44 for 2004),

b section 30 of FA 2006 (increase in first-year allowance under section 44 for 2006),

and c section 37 of FA 2007 (increase in first-year allowance under section 44 for 2007).

5 The repeals made by subsections (2) and (3) have effect in relation to expenditure incurred on or after the relevant date.

6 But subsection (7) applies in relation to an additional VAT liability incurred on or after the relevant date which under section 235 of CAA 2001 is treated as qualifying expenditure.

7 If the original expenditure (within the meaning of that section) was first-year qualifying expenditure by virtue of section 44 of CAA 2001, Chapter 18 of Part 2 of that Act (additional VAT liabilities and rebates) applies to the additional VAT liability as if the provisions repealed by this section were not so repealed.

8 The relevant date is—

a for corporation tax purposes, 1 April 2008, and b for income tax purposes, 6 April 2008.