Introduction Details of the Section
2.Subsection (1) amends section 230 of the Capital Allowances Act 2001 (CAA) so that transactions with manufacturers or suppliers are no longer exempted from any restriction on the buyer’s allowances made by section 217 of CAA (which denies annual investment allowance or first-year allowances).
3.Subsection (2) provides that the change applies to expenditure incurred on or after 12 August 2011.
4.Subsection (3) provides that, in relation to expenditure incurred between 11 August 2011 and ‘the next amendment date’ (later defined as 1 April 2012, for corporation tax purposes, or 6 April 2012, for income tax purposes) first-year allowances are not denied provided the condition in subsection (4) is met.
5.Subsection (4) sets out the condition, providing that if the amendments made by paragraphs 1 to 7 of Schedule 9 had been in force between 12 August 2011 and the relevant April 2012 start date,  the transaction would not have been caught by the anti-avoidance rule in the revised section 215 and first-year allowances will not be denied.
6.Subsection (5) defines ‘the next amendment date’ and explains that it means the date defined in paragraph 9 of Schedule 9, that is, 1 April 2012 for corporation tax purposes, or 6 April 2012 for income tax purposes.