Capital Allowances Act 2001 Schedule 3 paragraph 27

Abandonment expenditure incurred after cessation of ring fence trade

Schedule 3 paragraph 27 restricts the application of the general decommissioning expenditure rules where abandonment expenditure was incurred before a specified date.

• Section 165 provides relief for general decommissioning expenditure incurred after a ring fence trade has ceased
• Paragraph 27 disapplies Section 165 where the abandonment expenditure was incurred before 1st July 1991
• This means that only abandonment expenditure incurred on or after 1st July 1991 can benefit from the Section 165 provisions
• The rule acts as a transitional provision, ensuring the decommissioning relief does not apply retrospectively to earlier spending