Part 2

Plant and machinery allowances
Chapter 4

First-year qualifying expenditure

Types of expenditure which may qualify for first-year allowances

Expenditure on plant and machinery for use in special tax sites
45O
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
special 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
the 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
special tax sites
),
- section 45R (effect of failing to comply with ongoing requirements) and regulations under that section, and
- section 46 (general exclusions).
Pt. 2 modified (24.2.2003) by Proceeds of Crime Act 2002 (c. 29), s. 458(1), Sch. 10 para. 12 (with Sch. 10 para. 17(1)); S.I. 2003/120, art. 2, Sch. (with arts. 3 4) (as amended (20.2.2003) by S.I. 2003/333, art. 14)
S. 45H(2) modified (with effect in accordance with s. 167 of the amending Act) by Finance Act 2003 (c. 14) , Sch. 30 para. 7
Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 4 para. 4 ; S.I. 2004/2575 , art. 2(1) , Sch. 1
Pt. 2 modified (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 9(2), 21(2) (with s. 38(2)); S.I. 2004/2575, art. 2(1) , Sch. 1
Pt. 2 restricted (5.10.2004) by Energy Act 2004 (c. 20) , s. 198(2) , Sch. 9 paras. 10, 22 (with s. 38(2) ); S.I. 2004/2575 , art. 2(1) , Sch. 1
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 19
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 35
Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 paras. 36, 37
Pt. 2 modified (21.7.2009) by Finance Act 2009 (c. 10), s. 24
Pt. 2 modified (17.7.2013) by Finance Act 2013 (c. 29), s. 73(7)-(11) (with s. 73(6))
Pt. 2 modified (10.6.2021) by Finance Act 2021 (c. 26), s. 9(1)(a)
Ss. 45O-45R inserted (10.6.2021) by Finance Act 2021 (c. 26), Sch. 22 para. 3
Words in s. 45O(7) substituted (24.2.2022) by Finance Act 2022 (c. 3), Sch. 16 para. 2
Words in ss. 45O-45R substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 23 para. 11(b)
Words in s. 45O(5) substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), s. 332(2)(4)