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Capital Allowances Act 2001 is up to date with all changes known to be in force on or before 11 September 2024. There are changes that may be brought into force at a future date.
Revised legislation carried on this site may not be fully up to date. Changes and effects are recorded by our editorial team in lists which can be found in the ‘Changes to Legislation’ area. Where those effects have yet to be applied to the text of the legislation by the editorial team they are also listed alongside the affected provisions when you open the content using the Table of Contents below.
Whole provisions yet to be inserted into this Act (including any effects on those provisions):
Part 2 Plant and machinery allowances
11.General conditions as to availability of plant and machinery allowances
12.Expenditure incurred before qualifying activity carried on
13.Use for qualifying activity of plant or machinery provided for other purposes
13A.Use for other purposes of plant or machinery previously used for long funding leasing
13B.Use for other purposes of plant or machinery: property businesses
14.Use for qualifying activity of plant or machinery which is a gift
Chapter 3 Qualifying expenditure
Exclusion of certain types of expenditure
34A.Expenditure on plant or machinery for long funding leasing not qualifying expenditure
35.Expenditure on plant or machinery for use in dwelling-house not qualifying expenditure in certain cases
36.Restriction on qualifying expenditure in case of employment or office
38ZA.Vehicles for which deductions allowed at fixed rate under Part 2 of ITTOIA 2005
Chapter 4 First-year qualifying expenditure
Types of expenditure which may qualify for first-year allowances
40.Expenditure incurred for Northern Ireland purposes by small or medium-sized enterprises
41.Miscellaneous exclusions from section 40 (expenditure for Northern Ireland purposes etc.)
42.Exclusion of plant or machinery partly for use outside Northern Ireland
43.Effect of plant or machinery subsequently being primarily for use outside Northern Ireland
44.Expenditure incurred by small or medium-sized enterprises
45AA.Section 45A exclusion: feed-in tariffs and renewable heat incentives
45E.Expenditure on plant or machinery for gas refuelling station
45EA.Expenditure on plant or machinery for electric vehicle charging point
45F.Expenditure on plant and machinery for use wholly in a ring fence trade
45G.Plant or machinery used for less than five years in a ring fence trade
45H.Expenditure on environmentally beneficial plant or machinery
45I.Certification of environmentally beneficial plant and machinery
45J.Environmentally beneficial components of plant or machinery
45K.Expenditure on plant and machinery for use in designated assisted areas
45L.Exclusion of plant or machinery partly for use outside designated assisted areas
45N.Effect of plant or machinery subsequently being primarily for use outside designated assisted areas
45O.Expenditure on plant and machinery for use in special tax sites
45Q.Exclusion of plant or machinery partly for use outside special tax sites
45T.Exclusion of expenditure incurred under disqualifying arrangements
Chapter 5 Allowances and charges
51D.Third restriction: groups of companies under common control
51E.Fourth restriction: other companies under common control
51H.Fifth restriction: qualifying activities under common control
51JA.Sixth restriction: allocation where profits chargeable at NI rate
51K.Operation of annual investment allowance where restrictions apply
51N.Special provision for long chargeable periods: supplementary
List of provisions outside this Chapter about disposal values
Effect of changes in Northern Ireland status of SME company or SME partnership
Chapter 6 Hire-purchase etc. and plant or machinery provided by lessee
Chapter 6A Interpretation of provisions about long funding leases
Leases excluded by right of lessor etc to claim capital allowances
Excluded leases of background plant or machinery for a building
Transfers, assignments, novations, leaseback, variations etc
Chapter 10A Special rate expenditure
Chapter 13 Provisions affecting mining and oil industries
Expenditure connected with reuse etc. of offshore oil infrastructure
Persons who are treated as owners of fixtures
176.Person with interest in relevant land having fixture for purposes of qualifying activity
179.Equipment lessor has right to sever fixture that is not part of building
182.Purchaser of land discharging obligations of equipment lessee
182A.Purchaser of land discharging obligations of client under energy services agreement
Acquisition of ownership of fixture when another ceases to own it
Chapter 15 Asset provided or used only partly for qualifying activity
CHAPTER 16ZA Asset provided or used only partly for NI rate activity
Chapter 16A Restrictions on allowance buying
Chapter 17 Other anti-avoidance
Disposal of plant or machinery subject to lease where income retained
Chapter 18 Additional VAT liabilities and rebates
241.No annual investment allowance or first-year allowance in respect of additional VAT liability
243.Restriction on B’s qualifying expenditure: sale and finance leaseback
244.B’s qualifying expenditure if lessor not bearing non-compliance risk
245.Effect of election under section 227 on additional VAT liability
Chapter 19 Giving effect to allowances and charges
Part 3 Industrial buildings allowances
Chapter 2 Industrial buildings
Chapter 10 Additional VAT liabilities and rebates
Part 3A Business Premises Renovation Allowances
Chapter 3 QUALIFYING BUILDINGS AND QUALIFYING BUSINESS PREMISES
Part 4A FLAT CONVERSION ALLOWANCES
Part 5 Mineral extraction allowances
Chapter 2 Qualifying expenditure on mineral exploration and access
Chapter 3 Qualifying expenditure on acquiring a mineral asset
Chapter 5 Other kinds of qualifying expenditure
415. Contribution to buildings or works for benefit of employees abroad
416. Non-ring fence trades: expenditure on restoration within 3 years of ceasing to trade
416ZC.Site restoration services supplied by connected person
416ZE.Allowance where site restoration undertaken for other participators in oil field
Part 6 Research and development allowances
Part 12 Supplementary provisions
Chapter 2 Additional VAT liabilities and rebates: interpretation, etc.
Chapter 3 Disposals of oil licences: provisions relating to Parts 5 and 6
Schedules
Part 1 Entitlement to first-year tax credits
Incurring a loss in carrying on a qualifying activity
4.Paragraphs 5 to 9 apply for the interpretation of paragraph...
5.(1) This paragraph applies where the qualifying activity is an...
6.(1) This paragraph applies where the qualifying activity is an...
7.(1) This paragraph applies where— (a) the qualifying activity is...
8.(1) This paragraph applies where the qualifying activity is managing...
9.(1) This paragraph applies where the qualifying activity is basic...
10.Paragraphs 11 to 16 apply for the interpretation of paragraph...
11.(1) This paragraph applies where the qualifying activity is a...
12.(1) This paragraph applies where the qualifying activity is an...
13.(1) This paragraph applies where the qualifying activity is an...
14.(1) This paragraph applies where— (a) the qualifying activity is...
15.(1) This paragraph applies where the qualifying activity is managing...
16.(1) This paragraph applies where the qualifying activity is basic...
Part 2 Giving effect to first-year tax credits
The Income and Corporation Taxes Act 1988 (c. 1)
39. Sections 434D and 434E (capital allowances: management assets; investment assets)
61. Section 834 (interpretation of the Corporation Tax Acts)
64. Schedule 19AC (modification of Act in relation to overseas life insurance companies)
65. Schedule 21 (tax relief in connection with schemes for rationalising industry and other redundancy schemes)
66. Schedule 24 (assumptions for calculating chargeable profits, creditable tax and corresponding United Kingdom tax of foreign companies)
The Social Security Contributions and Benefits Act 1992 (c. 4)
The Social Security Contributions and Benefits (Northern Ireland) Act 1992 (c. 7)
Part 4 Plant and machinery allowances
29. Meaning of “interest in land” for purposes of Chapter 14 of Part 2 (fixtures)
32. Equipment lessor has right to sever fixture that is not part of building
35. Purchaser of land discharging obligations of equipment lessee
38. Fixture on which a plant and machinery allowance has been claimed
39. Fixture on which industrial buildings allowance has been made
40. Fixture on which research and development allowance has been made
Part 5 Industrial buildings allowances
Part 7 Mineral extraction allowances
Qualifying expenditure: second-hand assets
85. Claims before 26th November 1996 in respect of acquisition of mineral asset owned by previous trader
86. Acquisition of oil licence from non-trader before 13th September 1995
87. Restrictions on qualifying expenditure in case of UK oil licence and certain other assets inapplicable for expenditure pre-16th July 1985
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