Part 2Plant and machinery allowances

Chapter 4First-year qualifying expenditure

Types of expenditure which may qualify for first-year allowances

42Exclusion of plant or machinery partly for use outside Northern Ireland

1

Expenditure on plant or machinery is not first-year qualifying expenditure under section 40 if—

a

at the time when it is incurred, the person incurring it intends the plant or machinery to be used partly outside Northern Ireland, and

b

the main benefit, or one of the main benefits, which could reasonably be expected to arise from the relevant arrangements is the obtaining of a first-year allowance, or a greater first-year allowance, in respect of the part of the expenditure that is attributable to that intended use outside Northern Ireland.

2

For the purposes of subsection (1)—

a

“the relevant arrangements” means—

i

the transaction under which the expenditure is incurred, and

ii

any scheme or arrangements of which that transaction forms part, and

b

the part of the expenditure that is attributable under subsection (1)(b) is to be determined on a just and reasonable basis.