Part 2

Plant and machinery allowances
Chapter 4

First-year qualifying expenditure

Types of expenditure which may qualify for first-year allowances

Exclusion of plant or machinery partly for use outside special tax sites
45Q
1
This section applies if—
a
at the time when expenditure on plant or machinery is incurred, the company incurring it intends the plant or machinery to be used partly in an area which is not a
special tax site
, and
b
the main purpose, or one of the main purposes, for which a person is party to the relevant arrangements is the obtaining of a first-year allowance, or a greater first-year allowance, in respect of the part of the expenditure that is attributable to that intended use in an area which is not a
special tax site
(
the “non-qualifying part” of
the expenditure).
2
The
non-qualifying part
of the expenditure is not first-year qualifying expenditure under section 45O.
3
For the purposes of this section, the
non-qualifying part
of the expenditure is to be determined on a just and reasonable basis.
4
In this section, “
the relevant arrangements
” means—
a
the transaction under which the expenditure on the plant or machinery is incurred, and
b
any scheme or arrangements of which that transaction forms part.
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 ss. 45O-45R substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 23 para. 11(b)
Words in s. 45Q(1)(b) substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 23 para. 12(a)
Words in s. 45Q(2) substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 23 para. 12(b)
Words in s. 45Q(3) substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 23 para. 12(b)