Part 2 Plant and machinery allowances

Chapter 4 First-year qualifying expenditure

Types of expenditure which may qualify for first-year allowances

45D Expenditure on cars with low carbon dioxide emissions

(1)

Expenditure is first-year qualifying expenditure if—

(a)

it is incurred in F1the relevant period,

(b)

it is expenditure on a car which is first registered on or after 17th April 2002 and which is unused and not second-hand,

F2(c)

the car—

(i)

is electrically-propelled, or

(ii)

has low CO2 emissions, and

(d)

the expenditure is not excluded by section 46 (general exclusions).

F3(1A)

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F4(1B)

The “relevant period” is the period beginning with 17 April 2002 and ending with—

(a)

in the case of expenditure incurred by a company within the charge to corporation tax, 31 March 2026, and

(b)

in the case of expenditure incurred by a person within the charge to income tax, 5 April 2026.

(1C)

The Treasury may by regulations amend subsection (1B) so as to extend the relevant period.

(2)

For the purposes of this section F5a car has low CO2 emissions if it satisfies the conditions in subsections (3) and (4).

(3)

The first condition is that, when the car is first registered, it is so registered on the basis of F6a qualifying emissions certificate.

(4)

The second condition is that the applicable CO 2 emissions figure F7in relation to the car does not exceed F80 grams per kilometre driven.

F9(5)

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F9(6)

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(7)

The Treasury may by order amend the amount from time to time specified in subsection (4).

(8)

In this section any reference to a car F10is to a car within the meaning of section 268A, except that it—

(a)

includes a reference to a mechanically propelled road vehicle of a type commonly used as a hackney carriage, F11...

F11(b)

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F12(9)

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F12(10)

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F13(11)

In this section—

  • “applicable CO2 emissions figure” and “qualifying emissions certificate” have the meanings given in section 268C;

  • “electrically-propelled” has the meaning given in section 268B.