Capital Allowances Act 2001

46General exclusions applying to sections 40, 44 and 45
This section has no associated Explanatory Notes

(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—

    (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).