(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), or
section 45 (ICT expenditure incurred by small enterprises).
(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—
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
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).