Finance Act 2009

24 First-year capital allowances for expenditure in 2009-2010

(1) Part 2 of CAA 2001 (plant and machinery allowances) has effect as if—

(a) in section 39 (first-year qualifying expenditure), a reference to this section were included in the list of provisions describing first-year qualifying expenditure, and

(b) in the Table in section 52(3) (amount of first-year allowances), there were inserted at the end—

“Expenditure qualifying under section 24 of FA 2009 (expenditure in 2009-2010)

40%”.

(2) Expenditure is first-year qualifying expenditure under this section if—

(a) it is incurred in 2009-2010,

(b) it is not within any of the general exclusions in section 46(2) of CAA 2001 (subject to subsection (4)),

(c) it is not special rate expenditure (as defined by section 104A of CAA 2001), and

(d) it is not first-year qualifying expenditure under a provision of Chapter 4 of Part 2 of CAA 2001.

(3) For the purposes of this section expenditure is incurred in 2009-2010—

(a) in the case of expenditure incurred by a person within the charge to corporation tax, if it is incurred on or after 1 April 2009 but before 1 April 2010, and

(b) in the case of expenditure incurred by a person within the charge to income tax, if it is incurred on or after 6 April 2009 but before 6 April 2010.

(4) General exclusion 6 in section 46(2) of CAA 2001 (expenditure on provision of plant or machinery for leasing) does not prevent expenditure being first-year qualifying expenditure under this section if the plant or machinery is provided for leasing under an excluded lease of background plant or machinery for a building (as defined by section 70R of that Act).

(5) Expressions used in this section and in Part 2 of CAA 2001 have the same meaning here as in that Part of that Act, subject to subsection (6).

(6) In determining whether expenditure is incurred in 2009-2010, any effect of section 12 of CAA 2001 (expenditure incurred before qualifying activity carried on) on the time at which it is to be treated as incurred is to be disregarded.