Point in time view as at 06/04/2024.
Capital Allowances Act 2001, Cross Heading: First-year allowances is up to date with all changes known to be in force on or before 07 March 2025. There are changes that may be brought into force at a future date. Changes that have been made appear in the content and are referenced with annotations.
(1)A person is entitled to a first-year allowance in respect of first-year qualifying expenditure if—
(a)the expenditure is incurred in a chargeable period to which this Act applies, and
(b)the person owns the plant or machinery at some time during that chargeable period.
(2)Any first-year allowance is made for the chargeable period in which the first-year qualifying expenditure is incurred.
(3)The amount of the allowance is a percentage of the first-year qualifying expenditure in respect of which the allowance is made, as shown in the Table—
Amount of first-year allowances
| Type of first-year qualifying expenditure | Amount |
|---|---|
| F1. . . | F1. . . |
| F2. . . | F2. . . |
| F1. . . | F1. . . |
| F3. . . | F3. . . |
| [F4Expenditure qualifying under section 45D (expenditure on cars with low CO2 emissions) | 100%] |
| [F5Expenditure qualifying under section 45DA (expenditure on zero-emission goods vehicles) | 100%] |
| [F6Expenditure qualifying under section 45E (expenditure on plant or machinery for gas refuelling station) | 100%] |
| [F7Expenditure qualifying under section 45EA (expenditure on plant or machinery for electric vehicle charging point) | 100%] |
| [F8Expenditure qualifying under section 45F (expenditure for use wholly in a ring fence trade) | 100%] |
| F9. . . | F9. . . |
| [F10Expenditure qualifying under section 45K (expenditure on plant and machinery for use in designated assisted areas) | 100%] |
| [F11Expenditure qualifying under section 45O (expenditure on plant and machinery for use in [F12special tax sites]) | 100%] |
| [F13Expenditure qualifying under section 45S (expenditure on plant or machinery in other cases) which is not special rate expenditure | 100%] |
| [F13Expenditure qualifying under section 45S (expenditure on plant or machinery in other cases) which is special rate expenditure | 50%] |
F14...
[F15(3A)Subsection (3B) applies where the Treasury make regulations under section 45EA(4) (power to extend relevant period).
(3B)The regulations may amend the amount specified in column 2 of the Table in subsection (3) for expenditure qualifying under section 45EA, but only in relation to expenditure incurred after the date on which the relevant period would have ended but for the regulations.]
(4)A person who is entitled to a first-year allowance may claim the allowance in respect of the whole or a part of the first-year qualifying expenditure.
(5)Subsection (1) needs to be read with section 236 (first-year allowances in respect of additional VAT liabilities) and is subject to—
[F16section 70DA(2) (transfer and long funding leaseback: no first-year allowance for lessee),]
section 205 (reduction of first-year allowance if plant or machinery provided partly for purposes other than those of qualifying activity),
section 210 (reduction of first-year allowance if it appears that a partial depreciation subsidy is or will be payable), F17...
[F18section 212T (cap on first-year allowances: zero-emission goods vehicles), F19...]
[F20 section 212U (cap on first-year allowances: expenditure on plant and machinery for use in designated assisted areas), and ]
sections 217[F21, 229A(2) ] F22... and 241 (anti-avoidance: no first-year allowance in certain cases).
Textual Amendments
F1S. 52(3) entries omitted (21.7.2008) by virtue of Finance Act 2008 (c. 9), s. 76(5)(d) (with s. 76(7)(8))
F2S. 52(3) entry omitted (with effect in accordance with s. 75(5)-(8) of the amending Act) by virtue of Finance Act 2008 (c. 9), s. 75(3)(d)(i)
F3Words in s. 52(3) omitted (with effect in accordance with s. 33(5) of the amending Act) by virtue of Finance Act 2019 (c. 1), s. 33(2)(b)(v)(a)
F4S. 52(3): words in Table added (with effect as mentioned in s. 59 of the amending Act) by Finance Act 2002 (c. 23), s. 59, Sch. 19 para. 5
F5Words in s. 52(3) Table inserted (with effect in accordance with Sch. 7 para. 7 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 7 para. 5(2)
F6S. 52(3): words in Table added (with effect as mentioned in s. 61 of the amending Act) by Finance Act 2002 (c. 23), s. 61, Sch. 20 para. 5
F7Words in s. 52(3) inserted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), s. 38(5)(a)
F8Words in s. 52(3) substituted (with effect in accordance with s. 108(2) of the amending Act) by Finance Act 2008 (c. 9), s. 108(1)
F9Words in s. 52(3) omitted (with effect in accordance with s. 33(5) of the amending Act) by virtue of Finance Act 2019 (c. 1), s. 33(2)(b)(v)(b)
F10Words in s. 52(3) inserted (with effect in accordance with Sch. 11 para. 8 of the amending Act) by Finance Act 2012 (c. 14), Sch. 11 para. 5(2)
F11Words in s. 52(3) inserted (10.6.2021) by Finance Act 2021 (c. 26), Sch. 22 para. 5
F12Words in s. 52(3) substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 23 para. 11(d)
F13Words in s. 52(3) Table inserted (22.2.2024) by Finance (No. 2) Act 2023 (c. 30), s. 7(5) (as amended by Finance Act 2024 (c. 3), s. 1(2)(a))
F14Words in s. 52(3) omitted (with effect in accordance with s. 75(5)-(8) of the amending Act) by virtue of Finance Act 2008 (c. 9), s. 75(3)(d)(ii)
F15S. 52(3A)(3B) inserted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), s. 38(5)(b)
F16Words in s. 52(5) inserted (with effect in accordance with Sch. 32 para. 17 to the amending Act) by Finance Act 2009 (c. 10), Sch. 32 para. 13
F17Word in s. 52(5) omitted (with effect in accordance with Sch. 7 para. 7 of the amending Act) by virtue of Finance (No. 3) Act 2010 (c. 33), Sch. 7 para. 5(3)(a)
F18Words in s. 52(5) inserted (with effect in accordance with Sch. 7 para. 7 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 7 para. 5(3)(b)
F19Word in s. 52(5) omitted (with effect in accordance with Sch. 11 para. 8 of the amending Act) by virtue of Finance Act 2012 (c. 14), Sch. 11 para. 5(3)(a)
F20S. 52(5) entry inserted (with effect in accordance with Sch. 11 para. 8 of the amending Act) by Finance Act 2012 (c. 14), Sch. 11 para. 5(3)(b)
F21Word in s. 52(5) inserted (with effect in accordance with Sch. 32 para. 22 to the amending Act) by Finance Act 2009 (c. 10), Sch. 32 para. 19
F22Words in s. 52(5) omitted (with effect in accordance with Sch. 20 para. 6(19) of the amending Act) by virtue of Finance Act 2008 (c. 9), Sch. 20 para. 6(3)
Modifications etc. (not altering text)
C1S. 52(3) modified (temp.) (with effect in accordance with s. 30(2) of the amending Act) by Finance Act 2006 (c. 25), s. 30(1)
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