Finance Act 2012

45 Allowances for energy-saving plant and machinery U.K.

(1) Part 2 of CAA 2001 (plant and machinery allowances) is amended as follows.

(2) In section 45A (expenditure on energy-saving plant or machinery), after subsection (1) insert—

“(1A) This section is subject to section 45AA (payments under Energy Act 2008 schemes).”

(3) After that section insert—

“45AA Section 45A exclusion: payments under Energy Act 2008 schemes

(1) Expenditure incurred on or after the relevant date on plant or machinery is to be treated as never having been first-year qualifying expenditure under section 45A if—

(a) a payment is made, or another incentive is given, under a scheme established by virtue of section 41 of the Energy Act 2008 (feed-in tariffs) in respect of electricity generated by the plant or machinery, or

(b) a payment is made, or another incentive is given, under a scheme established by regulations under section 100 of that Act (renewable heat incentives) in respect of heat generated, or gas or fuel produced, by the plant or machinery.

(2) All such assessments and adjustments of assessments are to be made as are necessary to give effect to subsection (1).

(3) If a person who has made a tax return becomes aware that, after making it, anything in it has become incorrect because of the operation of this section, the person must give notice to an officer of Revenue and Customs specifying how the return needs to be amended.

(4) The notice must be given within 3 months beginning with the day on which the person first became aware that anything in the return had become incorrect because of the operation of this section.

(5) Except as provided by subsection (6), the relevant date is—

(a) for corporation tax purposes, 1 April 2012, and

(b) for income tax purposes, 6 April 2012.

(6) In the case of expenditure incurred on a combined heat and power system, the relevant date in relation to subsection (1)(b) is—

(a) for corporation tax purposes, 1 April 2014, and

(b) for income tax purposes, 6 April 2014.”

(4) In section 104A (special rate expenditure)—

(a) in subsection (1), omit the “and” after paragraph (e), and after paragraph (f) insert “, and

(g) expenditure incurred on or after the third relevant date on the provision of solar panels.”, and

(b) after subsection (3) insert—

“(3A) The third relevant date is—

(a) for corporation tax purposes, 1 April 2012, and

(b) for income tax purposes, 6 April 2012.”