Capital Allowances Act 2001

[F1 45Q Exclusion of plant or machinery partly for use outside [F2 special tax sites] U.K.

(1) This section applies if—

(a) at the time when expenditure on plant or machinery is incurred, the company incurring it intends the plant or machinery to be used partly in an area which is not a [F2 special tax site], and

(b) the main purpose, or one of the main purposes, for which a person is party to 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 in an area which is not a [F2 special tax site] ([F3 the “non-qualifying part” of] the expenditure).

(2) The [F4 non-qualifying part] of the expenditure is not first-year qualifying expenditure under section 45O.

(3) For the purposes of this section, the [F5 non-qualifying part] of the expenditure is to be determined on a just and reasonable basis.

(4) In this section, “the relevant arrangements” means—

(a) the transaction under which the expenditure on the plant or machinery is incurred, and

(b) any scheme or arrangements of which that transaction forms part.]

Textual Amendments

F1 Ss. 45O-45R inserted (10.6.2021) by Finance Act 2021 (c. 26), Sch. 22 para. 3

F2 Words in ss. 45O-45R substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 23 para. 11(b)

F3 Words in s. 45Q(1)(b) substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 23 para. 12(a)

F4 Words in s. 45Q(2) substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 23 para. 12(b)

F5 Words in s. 45Q(3) substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 23 para. 12(b)