Expenditure that is taken into account for certain transport grants does not qualify for initial allowance. The grants are:
The grant or payment may be received after an initial allowance has been made. If so you should withdraw the initial allowance to the extent that the expenditure was taken into account for the grant. If the recipient of the grant repays it wholly or partly, the grant is treated to that extent as if it had never been made and so initial allowance becomes available. There is an extended time limit for both situations. Assessments and adjustments may be made up to the end of 3 years after the end of the chargeable period in which the grant was made or repaid.
