Finance Act 2024

UK expenditure threshold to replace EEA expenditure threshold

5 (1) In section 1217RB (European expenditure condition)—

(a) in the heading, for “European” substitute “UK”;

(b) in subsection (1)—

(i) for “European” (in both places it occurs) substitute “UK”;

(ii) for “25%” substitute “10%”;

(c) for subsection (2) substitute—

“(2) In this Part “UK expenditure” means expenditure on goods or services that are used or consumed in the United Kingdom.”;

(d) in subsection (3), for “European and non-European expenditure” substitute “expenditure that is and is not UK expenditure”;

(e) in subsection (5), for “European” substitute “UK”.

(2) In each of the following provisions, for “European” (in each place it occurs) substitute “UK”—

(a) section 1217RA(2)(d) and (4)(d) (need to meet European expenditure condition to qualify for relief);

(b) section 1217T(2) (provisional satisfaction of European expenditure condition);

(c) section 1217TA(1), (2) and (3) (European expenditure condition provisionally satisfied not later satisfied).

(3) In section 1217U (defined terms)—

(a) omit the definitions of “European expenditure” and “European expenditure condition”;

(b) at the end insert—

• ““UK expenditure” has the meaning given by section 1217RB(2);

• “UK expenditure condition” has the meaning given by section 1217RB(1).”

(4) In Schedule 4 (index of defined expressions)—

(a) omit the entries for “European expenditure (in Part 15D)” and “European expenditure condition (in Part 15D)”;

(b) at the appropriate places insert—

“UK expenditure (in Part 15D)

section 1217RB(2)”;

“UK expenditure condition (in Part 15D)

section 1217RB(1)”.

(5) For transitional provision in relation to this paragraph, see paragraph 11.