Finance Act 2015

Capital allowances

45 Zero-emission goods vehicles

(1) CAA 2001 is amended as follows.

(2) In section 45DA(1)(a) (period during which first-year qualifying expenditure may be incurred), for “5 years” substitute “8 years”.

(3) Section 45DB (exclusions from allowances under section 45DA) is amended in accordance with subsections (4) to (7).

(4) In subsection (7), omit “notified” (in both places).

(5) In subsection (8), omit “to that extent”.

(6) In subsection (11), omit the definition of “notified State aid”.

(7) After that subsection insert—

“(11A) Nothing in this section limits references to “State aid” to State aid which is required to be notified to and approved by the European Commission.”

(8) The amendments made by subsections (3) to (7) have effect—

(a) in relation to a relevant grant or relevant payment made at any time (whether before or on or after the specified day) towards expenditure incurred on or after that day, and

(b) in relation to a relevant grant or relevant payment made on or after the specified day towards expenditure incurred before that day.

(9) “The specified day” means—

(a) for income tax purposes, 6 April 2015, and

(b) for corporation tax purposes, 1 April 2015.

46 Plant and machinery allowances: anti-avoidance

Schedule 10 contains provision about plant and machinery allowances.