Commentary on Sections Glossary Structure of Part 2 Section 244: B’s qualifying expenditure if lessor not bearing non-compliance risk
876.This section is based on parts of section 76A(6), (7) and (8) of CAA 1990. It applies when section 225 applies to the arrangements because more than half the risk to the lessor is removed. It ensures that any additional VAT liability in respect of the expenditure subject to the section 225 restriction cannot, itself, be qualifying expenditure for capital allowances purposes.