Capital Allowances Act 2001

46 General exclusions applying to sections 40, 44 and 45 U.K.

(1) Expenditure within any of the general exclusions in subsection (2) is not first-year qualifying expenditure under—

• section 40 (expenditure incurred for Northern Ireland purposes by small or medium-sized enterprises),

• section 44 (expenditure incurred by small or medium-sized enterprises), F1 ...

• section 45 (ICT expenditure incurred by small enterprises) [F2 , F3 ...

• section 45A (expenditure on energy-saving plant or machinery).F2 ][F4 ,

• section 45D (expenditure on cars with low CO₂ emissions),]

• [F5 section 45E (expenditure on plant or machinery for gas refuelling station)F5 ][F6 ,

• or section 45F (expenditure on plant and machinery for use wholly in a ring fence trade).]

F6 (2) The general exclusions are—

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 81).

General exclusion 3

The expenditure is of the kind described in section 94 (ships).

General exclusion 4

The expenditure is of the kind described in section 95 (railway assets).

General exclusion 5

The expenditure would be long-life asset expenditure but for paragraph 20 of Schedule 3 (transitional provisions).

General exclusion 6

The expenditure is on the provision of plant or machinery for leasing (whether in the course of a trade or otherwise).

For this purpose, the letting of a ship on charter, or of any other asset on hire, is to be regarded as leasing (whether or not it would otherwise be so regarded).

General exclusion 7

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 a trade or business carried on by a person other than the person incurring the expenditure, and

(b) the obtaining of a first-year allowance is the main benefit, or one of the main benefits, which could reasonably be expected to arise from the making of the change.

General exclusion 8

Either of the following sections applies—

• section 13 (use for qualifying activity of plant or machinery provided for other purposes);

• 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).

[F7 (3) Subsection (1) is subject to the following provisions of this section.

(4) General exclusion 2 does not prevent expenditure being first-year qualifying expenditure under section 45D.]

[F8 (5) General exclusion 6 does not prevent expenditure being first-year qualifying expenditure under section 45A, 45D or 45E.F8 ]

Textual Amendments

F1 Word in s. 46(1) repealed (with effect in accordance with s. 65 of the amending Act) by Finance Act 2001 (c. 9), s. 110, Sch. 33 Pt. 2(4) Note

F2 Words in s. 46(1) inserted (with effect as mentioned in s. 65 of the amending Act) by Finance Act 2001 (c. 9), s. 65, Sch. 17 para. 3

F3 Word in s. 46(1) repealed (with effect as mentioned in s. 59 of the amending Act) by Finance Act 2002 (c. 23), s. 141, (Sch. 40 Pt. 3(7) note)

F4 Entry in s. 46(1) relating to s. 45D inserted (with effect as mentioned in s. 59 of the amending Act) by Finance Act 2002 (c. 23), s. 59, Sch. 19 para. 4(2)

F5 Entry in s. 46(1) relating to s. 45E inserted (with effect as mentioned in s. 61of the amending Act) by Finance Act 2002 (c. 23), s. 61, Sch. 20 para. 4

F6 Entry in s. 46(1) relating to s. 45F inserted (with effect as mentioned in s. 63 of the amending Act) by Finance Act 2002 (c. 23), s. 63, Sch. 21 para. 5

F7 Entry relating to s. 46(3)(4) inserted (with effect as mentioned in s. 59 of the amending Act) by Finance Act 2002 (c. 23), s. 59, Sch. 19 para. 4(3)

F8 S. 46(5) inserted (ith effect as mentioned in s. 62(2) of the amending Act) by Finance Act 2002 (c. 23), s. 62(1)