Capital Allowances Act 2001

46 General exclusions applying to sections 40, 44 and 45

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

• section 40 (expenditure incurred for Northern Ireland purposes by small or medium-sized enterprises),

• section 44 (expenditure incurred by small or medium-sized enterprises), or

• section 45 (ICT expenditure incurred by small enterprises).

(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 81).

• General exclusion 3

  The expenditure is of the kind described in section 94 (ships).

• General exclusion 4

  The expenditure is of the kind described in section 95 (railway assets).

• 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

  Either of the following sections applies—

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

  • 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).