C1C5C4C3C6C7C8C9C10Part 2 Plant and machinery allowances
Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 10, 22 (with s. 38(2) ); S.I. 2004/2575 , art. 2(1) , Sch. 1
Pt. 2 modified (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 9(2), 21(2) (with s. 38(2)); S.I. 2004/2575, art. 2(1) , Sch. 1
Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 4 para. 4 ; S.I. 2004/2575 , art. 2(1) , Sch. 1
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 19
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 35
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 paras. 36, 37
Pt. 2 modified (21.7.2009) by Finance Act 2009 (c. 10), s. 24
Pt. 2 modified (17.7.2013) by Finance Act 2013 (c. 29), s. 73(7)-(11) (with s. 73(6))
F1Chapter 3AAIA qualifying expenditure
Pt. 2 Ch. 3A inserted (with effect in accordance with Sch. 24 para. 23 of the amending Act) by Finance Act 2008 (c. 9), Sch. 24 para. 2
38AAIA qualifying expenditure
1
An annual investment allowance is not available unless the qualifying expenditure is AIA qualifying expenditure.
2
Expenditure is AIA qualifying expenditure if—
a
it is incurred by a qualifying person on or after the relevant date, and
b
it is not excluded by any of the general exclusions in section 38B.
3
“Qualifying person” means—
a
an individual,
b
a partnership of which all the members are individuals, or
c
a company.
4
In determining whether expenditure is AIA qualifying expenditure, any effect of section 12 on the time at which it is to be treated as incurred is to be disregarded.
5
“The relevant date” means—
a
for corporation tax purposes, 1 April 2008, and
b
for income tax purposes, 6 April 2008.
38BGeneral exclusions applying to section 38A
Expenditure within any of the following general exclusions is not AIA qualifying expenditure.
General exclusion 1
The expenditure is incurred in the chargeable period in which the qualifying activity is permanently discontinued.
General exclusion 2
The expenditure is incurred on the provision of a car (as defined by section F2268A).
General exclusion 3
The expenditure is incurred wholly for the purposes of a ring fence trade in respect of which tax is chargeable under F3section 330(1) of CTA 2010 (supplementary charge in respect of ring fence trades).
General exclusion 4
The circumstances of the incurring of the expenditure are that—
- a
the provision of the plant or machinery on which the expenditure is incurred is connected with a change in the nature or conduct of the trade or business carried on by a person other than the person incurring the expenditure, and
- b
the obtaining of an annual investment allowance is the main benefit, or one of the main benefits, which could reasonably be expected to arise from the making of the change.
- a
General exclusion 5
Any of the following sections applies—
section 13 (use for qualifying activity of plant or machinery provided for other purposes);
section 13A (use for other purposes of plant or machinery provided for long funding leasing);
section 14 (use for qualifying activity of plant or machinery which is a gift).
This is subject to section 161 (pre-trading expenditure on mineral exploration and access).
Pt. 2 modified (24.2.2003) by Proceeds of Crime Act 2002 (c. 29), s. 458(1), Sch. 10 para. 12 (with Sch. 10 para. 17(1)); S.I. 2003/120, art. 2, Sch. (with arts. 34) (as amended (20.2.2003) by S.I. 2003/333, art. 14)