Part 2 Plant and machinery allowances

Chapter 4 First-year qualifying expenditure

Types of expenditure which may qualify for first-year allowances

F145OExpenditure on plant and machinery for use in F2special tax sites

(1)

Expenditure incurred by a company on the provision of plant or machinery is first-year qualifying expenditure if conditions A to E are met.

(2)

Condition A is that the plant or machinery is for use primarily in an area which, at the time the expenditure is incurred, is a F2special tax site.

(3)

Condition B is that the plant or machinery is unused and is not second-hand.

(4)

Condition C is that the expenditure is incurred for the purposes of a qualifying activity within section 15(1)(a) or (f).

(5)

Condition D is that the expenditure is incurred on or before F3the applicable sunset date in relation to the special tax site concerned (as to which see section 332(4) and (5) of F(No.2)A 2023).

(6)

Condition E is that the company is within the charge to corporation tax.

(7)

This section is subject to—

  • regulations under section 45P,

  • section 45Q (exclusion of plant or machinery partly for use outside F2special tax sites),

  • F4section 45R (effect of failing to comply with ongoing requirements) and regulations under that section, and

  • section 46 (general exclusions).