C1C7C4C3C9C10C11C12C13C14Part 2 Plant and machinery allowances
Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 10, 22 (with s. 38(2) ); S.I. 2004/2575 , art. 2(1) , Sch. 1
Pt. 2 modified (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 9(2), 21(2) (with s. 38(2)); S.I. 2004/2575, art. 2(1) , Sch. 1
Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 4 para. 4 ; S.I. 2004/2575 , art. 2(1) , Sch. 1
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 19
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 35
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 paras. 36, 37
Pt. 2 modified (21.7.2009) by Finance Act 2009 (c. 10), s. 24
Pt. 2 modified (17.7.2013) by Finance Act 2013 (c. 29), s. 73(7)-(11) (with s. 73(6))
Pt. 2 modified (10.6.2021) by Finance Act 2021 (c. 26), s. 9(1)(a)
C7C4C6C5C3C13C15Chapter 5 Allowances and charges
Pt. 2 modified (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 para. 21(2) (with s. 38(2) ); S.I. 2004/2575 , art. 2(1) , Sch. 1
Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 para. 10 (with s. 38(2) ); S.I. 2004/2575 , art. 2(1) , Sch. 1
Pt. 2 modified (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), s. 7
First-year allowances
52 First-year allowances
1
A person is entitled to a first-year allowance in respect of first-year qualifying expenditure if—
a
the expenditure is incurred in a chargeable period to which this Act applies, and
b
the person owns the plant or machinery at some time during that chargeable period.
2
Any first-year allowance is made for the chargeable period in which the first-year qualifying expenditure is incurred.
C83
The amount of the allowance is a percentage of the first-year qualifying expenditure in respect of which the allowance is made, as shown in the Table—
Amount of first-year allowances
Type of first-year qualifying expenditure | Amount |
|---|---|
F5. . . | F5. . . |
F4. . . | F4. . . |
F5. . . | F5. . . |
F18. . . | F18. . . |
F1Expenditure qualifying under section 45D (expenditure on cars with low CO2 emissions) | 100% |
F10Expenditure qualifying under section 45DA (expenditure on zero-emission goods vehicles) | 100% |
F2Expenditure qualifying under section 45E (expenditure on plant or machinery for gas refuelling station) | 100% |
F17Expenditure qualifying under section 45EA (expenditure on plant or machinery for electric vehicle charging point) | 100% |
F6Expenditure qualifying under section 45F (expenditure for use wholly in a ring fence trade) | 100% |
F19. . . | F19. . . |
F13Expenditure qualifying under section 45K (expenditure on plant and machinery for use in designated assisted areas) | 100% |
F20Expenditure qualifying under section 45O (expenditure on plant and machinery for use in F21special tax sites) | 100% |
F22Expenditure qualifying under section 45S (expenditure on plant or machinery in other cases) which is not special rate expenditure | 100% |
F22Expenditure qualifying under section 45S (expenditure on plant or machinery in other cases) which is special rate expenditure | 50% |
F3...
F163A
Subsection (3B) applies where the Treasury make regulations under section 45EA(4) (power to extend relevant period).
3B
The regulations may amend the amount specified in column 2 of the Table in subsection (3) for expenditure qualifying under section 45EA, but only in relation to expenditure incurred after the date on which the relevant period would have ended but for the regulations.
4
A person who is entitled to a first-year allowance may claim the allowance in respect of the whole or a part of the first-year qualifying expenditure.
5
Subsection (1) needs to be read with section 236 (first-year allowances in respect of additional VAT liabilities) and is subject to—
F8section 70DA(2) (transfer and long funding leaseback: no first-year allowance for lessee),
section 205 (reduction of first-year allowance if plant or machinery provided partly for purposes other than those of qualifying activity),
section 210 (reduction of first-year allowance if it appears that a partial depreciation subsidy is or will be payable), F11...
F12section 212T (cap on first-year allowances: zero-emission goods vehicles), F14...
F15 section 212U (cap on first-year allowances: expenditure on plant and machinery for use in designated assisted areas), and
sections 217F9, 229A(2) F7... and 241 (anti-avoidance: no first-year allowance in certain cases).
Pt. 2 modified (24.2.2003) by Proceeds of Crime Act 2002 (c. 29), s. 458(1), Sch. 10 para. 12 (with Sch. 10 para. 17(1)); S.I. 2003/120, art. 2, Sch. (with arts. 34) (as amended (20.2.2003) by S.I. 2003/333, art. 14)