Capital Allowances Act 2001

Expenditure incurred 1992-93

47 (1) Expenditure is first-year qualifying expenditure under this paragraph if—

(a) it was incurred in the period beginning with 1st November 1992 and ending with 31st October 1993, and

(b) it is not excluded by sub-paragraphs (3) to (8).

(2) In determining whether expenditure is first-year qualifying expenditure under this paragraph, any effect of section 12 on the time at which it is to be treated as incurred is to be disregarded.

(3) Expenditure is not first-year qualifying expenditure under this paragraph if it was incurred—

(a) in the chargeable period in which there was a permanent discontinuance of the qualifying activity, or

(b) on the provision of a car other than a qualifying hire car (as defined by section 82).

(4) Expenditure on the provision of plant or machinery for leasing is not first-year qualifying expenditure under this paragraph if it appears that the expenditure is of the kind described in section 109(2) or 110(2) (expenditure on plant or machinery which is used for overseas leasing etc.).

(5) Expenditure on the provision of plant or machinery for leasing is not first-year qualifying expenditure under this paragraph if—

(a) the expenditure was incurred on or after 14th April 1993,

(b) the person to whom the plant or machinery is to be or is leased, or a person who is connected with that person, used the plant or machinery for any purpose at any time before its provision for leasing, and

(c) the expenditure does not fall within any of the categories of expenditure on plant or machinery for leasing given in sub-paragraph (6).

(6) The categories referred to in sub-paragraph (5)(c) are as follows.

• Category 1. Expenditure on leasing qualifying by reference to Chapter 11 of Part 2 (overseas leasing)

  It appears that the plant or machinery—

  (a)

  will be used for a qualifying purpose (as defined by sections 122 to 125) in the designated period (as defined by section 106), and

  (b)

  will not be used for any other purpose at any time in that period.

• Category 2. Enterprise zones

  The circumstances of the incurring of the expenditure are that—

  (a)

  the expenditure is incurred on the provision of plant or machinery which is to be an integral part of a building or structure, and

  (b)

  expenditure incurred at that time on the construction of the building or structure would be qualifying enterprise zone expenditure to which Chapter 5 of Part 3 (initial allowances for qualifying enterprise zone expenditure) would apply.

• Category 3. Fixtures

  The circumstances of the incurring of the expenditure are that—

  (a)

  expenditure is incurred on the provision of plant or machinery which is fixed to land or a building,

  (b)

  the person who incurs it is the lessor of the land or building, and

  (c)

  a transfer of the person’s interest in the land or building would operate to transfer that person’s interest in the plant or machinery.

• Category 4. Cars hired out to the disabled etc.

  The expenditure is incurred on the provision of a car which is within section 82(4) (cars hired out to persons receiving disability allowances etc.).

(7) Sub-paragraph (4) does not prevent expenditure being first-year qualifying expenditure, if it appears that—

(a) the plant or machinery will be leased as described in section 116(1), and

(b) the circumstances are such that section 116(3) will require the whole or any part of the expenditure to be treated as not subject to section 107, 109 or 110.

(8) Any first-year allowance under sub-paragraph (7) (when read with section 236) is to be made on the same basis and subject to the same apportionments (if any) as would be applicable in the case of a writing-down allowance under section 116(5).