Commentary on Sections Glossary Structure of Part 2 Section 218: Restriction on B’s qualifying expenditure
796.These sections are based on sections 75(1), (2) and (3) and 76(2), (4) and (7) of CAA 1990. They restrict the buyer’s allowances if a relevant transaction is within sections 214 to 216:
	section 217 denies the buyer first-year allowances; and
	section 218 restricts the buyer’s qualifying expenditure. This stops a buyer getting more capital allowances by, for example, paying a connected person over the odds for plant or machinery.
797.But if the transaction is a sale and finance leaseback sections 223 to 225 apply instead.