Part 2 Plant and machinery allowances
Chapter 5 Allowances and charges
First-year allowances
52 First-year allowances
(1)
A person is entitled to a first-year allowance in respect of first-year qualifying expenditure if—
(a)
the expenditure is incurred in a chargeable period to which this Act applies, and
(b)
the person owns the plant or machinery at some time during that chargeable period.
(2)
Any first-year allowance is made for the chargeable period in which the first-year qualifying expenditure is incurred.
(3)
The amount of the allowance is a percentage of the first-year qualifying expenditure in respect of which the allowance is made, as shown in the Table—
Amount of first-year allowances
Type of first-year qualifying expenditure | Amount |
|---|---|
F1. . . | F1. . . |
F2. . . | F2. . . |
F1. . . | F1. . . |
F3. . . | F3. . . |
F4Expenditure qualifying under section 45D (expenditure on cars with low CO2 emissions) | 100% |
F5Expenditure qualifying under section 45DA (expenditure on zero-emission goods vehicles) | 100% |
F6Expenditure qualifying under section 45E (expenditure on plant or machinery for gas refuelling station) | 100% |
F7Expenditure qualifying under section 45EA (expenditure on plant or machinery for electric vehicle charging point) | 100% |
F8Expenditure qualifying under section 45F (expenditure for use wholly in a ring fence trade) | 100% |
F9. . . | F9. . . |
F10Expenditure qualifying under section 45K (expenditure on plant and machinery for use in designated assisted areas) | 100% |
F11Expenditure qualifying under section 45O (expenditure on plant and machinery for use in F12special tax sites) | 100% |
F13Expenditure qualifying under section 45S (expenditure on plant or machinery in other cases) which is not special rate expenditure | 100% |
F13Expenditure qualifying under section 45S (expenditure on plant or machinery in other cases) which is special rate expenditure | 50% |
F14...
F15(3A)
Subsection (3B) applies where the Treasury make regulations under section 45EA(4) (power to extend relevant period).
(3B)
The regulations may amend the amount specified in column 2 of the Table in subsection (3) for expenditure qualifying under section 45EA, but only in relation to expenditure incurred after the date on which the relevant period would have ended but for the regulations.
(4)
A person who is entitled to a first-year allowance may claim the allowance in respect of the whole or a part of the first-year qualifying expenditure.
(5)
Subsection (1) needs to be read with section 236 (first-year allowances in respect of additional VAT liabilities) and is subject to—
F16section 70DA(2) (transfer and long funding leaseback: no first-year allowance for lessee),
section 205 (reduction of first-year allowance if plant or machinery provided partly for purposes other than those of qualifying activity),
section 210 (reduction of first-year allowance if it appears that a partial depreciation subsidy is or will be payable), F17...
F18section 212T (cap on first-year allowances: zero-emission goods vehicles), F19...
F20 section 212U (cap on first-year allowances: expenditure on plant and machinery for use in designated assisted areas), and
sections 217F21, 229A(2) F22... and 241 (anti-avoidance: no first-year allowance in certain cases).