(1) The following section shall be inserted after section 570 of the Capital Allowances Act 2001—
"570A Avoidance affecting proceeds of balancing event
(1) This section applies where an event occurs in relation to an asset (a "balancing event") as a result of which a balancing allowance would (but for this section) fall to be made to a person ("the taxpayer") under Part 3, 4, 4A, 5 or 10.
(2) The taxpayer is not entitled to any balancing allowance if, as a result of a tax avoidance scheme, the amount to be brought into account as the proceeds from the event is less than it would otherwise have been.
(3) In subsection (2) a "tax avoidance scheme" means a scheme or arrangement the main purpose, or one of the main purposes, of which is the obtaining of a tax advantage by the taxpayer.
(4) Where this section applies to deny a balancing allowance, the residue of qualifying expenditure immediately after the balancing event is nevertheless calculated as if the balancing allowance had been made.
(5) In this section as it applies for the purposes of Part 5 (mineral extraction allowances)—
(2) This Resolution shall apply in relation to any balancing event (within the meaning of section 570A, inserted by paragraph (1) above) occurring on or after 27th November 2002, except where the event—
And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.