Capital Allowances Act 2001

46 General exclusions F1 ... U.K.

(1) Expenditure within any of the general exclusions in subsection (2) is not first-year qualifying expenditure under [F2 any of the following provisions]—

• F3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• F5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• [F6 section 45D (expenditure on cars with low CO₂ emissions),]

• [F7 section 45DA (expenditure on zero-emission goods vehicles), ]

• [F8 section 45E (expenditure on plant or machinery for gas refuelling station)], F9 ...

• [F10 section 45EA (expenditure on plant or machinery for electric vehicle charging point)]

• [F11 section 45F (expenditure on plant and machinery for use wholly in a ring fence trade)]

  F5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• [F12 section 45K (expenditure on plant and machinery for use in designated assisted areas).]

• [F13 section 45O (expenditure on plant and machinery for use in [F14 special tax sites]).]

• [F15 section 45S (expenditure on plant or machinery in other cases)]

(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 [F16 268A]).

• F17 ...

• F18 ...

• 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

  [F19 Any] of the following sections applies—

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

  • [F20 section 13A (use for other purposes of plant or machinery provided for long funding leasing);]

  • 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).

[F21 (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.]

[F22 (4A) General exclusion 6 does not prevent expenditure being first-year qualifying expenditure under section 45S if the plant or machinery is provided for leasing under an excluded lease of background plant or machinery for a building.]

F23 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F23 (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Words in s. 46 heading omitted (21.7.2008) by virtue of Finance Act 2008 (c. 9), s. 76(5)(b)(ii) (with s. 76(7)(8))

F2 Words in s. 46(1) inserted (with effect in accordance with s. 167 of the amending Act) by Finance Act 2003 (c. 14) , Sch. 30 para. 4(1)(a)

F3 S. 46(1) entries omitted (21.7.2008) by virtue of Finance Act 2008 (c. 9), s. 76(5)(b)(i) (with s. 76(7)(8))

F4 S. 46(1) entry omitted (with effect in accordance with s. 75(5)-(8) of the amending Act) by virtue of Finance Act 2008 (c. 9), s. 75(3)(b)

F5 Words in s. 46(1) omitted (with effect in accordance with s. 33(5) of the amending Act) by virtue of Finance Act 2019 (c. 1), s. 33(2)(b)(iv)(a)

F6 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)

F7 Words in s. 46(1) inserted (with effect in accordance with Sch. 7 para. 7 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 7 para. 4

F8 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

F9 Word in s. 46(1) repealed (with effect in accordance with s. 167 of the amending Act) by Finance Act 2003 (c. 14) , Sch. 30 para. 4(1)(b) , 43 Pt. 3(9)

F10 Words in s. 46(1) inserted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), s. 38(4)

F11 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

F12 Words in s. 46(1) inserted (with effect in accordance with Sch. 11 para. 8 of the amending Act) by Finance Act 2012 (c. 14), Sch. 11 para. 4

F13 Words in s. 46(1) inserted (10.6.2021) by Finance Act 2021 (c. 26), Sch. 22 para. 4

F14 Words in s. 46(1) substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 23 para. 11(c)

F15 Words in s. 46(1) inserted (22.2.2024) by virtue of Finance (No. 2) Act 2023 (c. 30), s. 7(4)(a) (as amended by Finance Act 2024 (c. 3), s. 1(2)(a))

F16 Word in s. 46(2) substituted (with effect in accordance with Sch. 11 paras. 26, 27, 28(1) to the amending Act) by Finance Act 2009 (c. 10), Sch. 11 para. 3 (with Sch. 11 paras. 30-32)

F17 Words in s. 46(2) omitted (with effect in accordance with s. 70(2) of the amending Act) by virtue of Finance Act 2013 (c. 29), s. 70(1)(a)

F18 Words in s. 46(2) omitted (with effect in accordance with s. 70(2) of the amending Act) by virtue of Finance Act 2013 (c. 29), s. 70(1)(b)

F19 Word in s. 46(2) substituted (with effect in accordance with Sch. 8 para. 15 of the amending Act) by Finance Act 2006 (c. 25), Sch. 8 para. 4(2)(a)

F20 Words in s. 46(2) inserted (with effect in accordance with Sch. 8 para. 15 of the amending Act) by Finance Act 2006 (c. 25), Sch. 8 para. 4(2)(b)

F21 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)

F22 S. 46(4A) inserted (22.2.2024) by Finance (No. 2) Act 2023 (c. 30), s. 7(4)(b) (as amended by Finance Act 2024 (c. 3), s. 1(2)(a))

F23 S. 46(5)(6) omitted (with effect in accordance with s. 33(5) of the amending Act) by virtue of Finance Act 2019 (c. 1), s. 33(2)(b)(iv)(b)

Modifications etc. (not altering text)

C1 Pt. 2 modified (10.6.2021) by Finance Act 2021 (c. 26), s. 9(1)(a)

C2 S. 46(2) restricted (10.6.2021) by Finance Act 2021 (c. 26), s. 9(9)