{
  "url": "https://openlegislation.uk/capital-allowances-act-2001/section-38B",
  "json_url": "https://openlegislation.uk/capital-allowances-act-2001/section-38B.json",
  "legislation": "ukpga/2001/2",
  "legislation_title": "Capital Allowances Act 2001",
  "legislation_url": "https://openlegislation.uk/capital-allowances-act-2001",
  "path": "section/38B",
  "kind": "section",
  "number": "38B",
  "heading": "General exclusions applying to section 38A",
  "text": "Expenditure within any of the following general exclusions is not AIA qualifying expenditure.\nGeneral exclusion 1\nThe expenditure is incurred in the chargeable period in which the qualifying activity is permanently discontinued.\nGeneral exclusion 2\nThe expenditure is incurred on the provision of a car (as defined by section 268A).\nGeneral exclusion 3\nThe expenditure is incurred wholly for the purposes of a ring fence trade in respect of which tax is chargeable under section 330(1) of CTA 2010 (supplementary charge in respect of ring fence trades).\nGeneral exclusion 4\nThe circumstances of the incurring of the expenditure are that—\n(a)the provision of the plant or machinery on which the expenditure is incurred is connected with a change in the nature or conduct of the trade or business carried on by a person other than the person incurring the expenditure, and\n(b)the obtaining of an annual investment allowance is the main benefit, or one of the main benefits, which could reasonably be expected to arise from the making of the change.\nGeneral exclusion 5\nAny of the following sections applies—\nsection 13 (use for qualifying activity of plant or machinery provided for other purposes);\nsection 13A (use for other purposes of plant or machinery provided for long funding leasing);\nsection 14 (use for qualifying activity of plant or machinery which is a gift).\nThis is subject to section 161 (pre-trading expenditure on mineral exploration and access).",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Pt. 2 Ch. 3A inserted (with effect in accordance with Sch. 24 para. 23 of the amending Act) by Finance Act 2008 (c. 9), Sch. 24 para. 2"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Word in s. 38B substituted (with effect in accordance with Sch. 11 paras. 26, 27, 28(1) to the amending Act) by Finance Act 2009 (c. 10), Sch. 11 para. 2 (with Sch. 11 paras. 30-32)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "Words in s. 38B substituted (1.4.2010) (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 324 (with Sch. 2)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2001/2/section/38B",
    "retrieved_at": "2026-10-29T09:20:17.739129+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}