Section 45D Expenditure on cars with low carbon dioxide emissionsC1

United Kingdom

(1)

Expenditure is first-year qualifying expenditure if—

(a)

it is incurred in F1the relevant period,

(b)

it is expenditure on a car which is first registered on or after 17th April 2002 and which is unused and not second-hand,

F2(c)

the car—

(i)

is electrically-propelled, or

(ii)

has low CO₂ emissions, and

(d)

the expenditure is not excluded by section 46 (general exclusions).

F3(1A)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4(1B)

The “relevant period” is the period beginning with 17 April 2002 and ending with—

(a)

in the case of expenditure incurred by a company within the charge to corporation tax, 31 March F52027, and

(b)

in the case of expenditure incurred by a person within the charge to income tax, 5 April F62027.

(1C)

The Treasury may by regulations amend subsection (1B) so as to extend the relevant period.

(2)

For the purposes of this section F7a car has low CO₂ emissions if it satisfies the conditions in subsections (3) and (4).

(3)

The first condition is that, when the car is first registered, it is so registered on the basis of F8a qualifying emissions certificate.

(4)

The second condition is that the applicable CO ₂ emissions figure F9in relation to the car does not exceed F100 grams per kilometre driven.

F11(5)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7)

The Treasury may by order amend the amount from time to time specified in subsection (4).

(8)

In this section any reference to a car F12is to a car within the meaning of section 268A, except that it—

(a)

includes a reference to a mechanically propelled road vehicle of a type commonly used as a hackney carriage, F13...

(b)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F14(9)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(10)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F15(11)

In this section—

“applicable CO₂ emissions figure” and “qualifying emissions certificate” have the meanings given in section 268C;
“electrically-propelled” has the meaning given in section 268B.

Annotations

Textual amendments

F1: Words in s. 45D(1)(a) substituted (20.3.2025) by Finance Act 2025 (c. 8), s. 23(2)
F2: S. 45D(1)(c) 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. 14(2) (with Sch. 11 paras. 30-32)
F3: S. 45D(1A) omitted (20.3.2025) by virtue of Finance Act 2025 (c. 8), s. 23(3)
F4: S. 45D(1B)(1C) inserted (20.3.2025) by Finance Act 2025 (c. 8), s. 23(4)
F5: Word in s. 45D(1B)(a) substituted (18.3.2026) by Finance Act 2026 (c. 11), s. 30(a)
F6: Word in s. 45D(1B)(b) substituted (18.3.2026) by Finance Act 2026 (c. 11), s. 30(a)
F7: Words in s. 45D(2) 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. 14(3) (with Sch. 11 paras. 30-32)
F8: Words in s. 45D(3) 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. 14(4) (with Sch. 11 paras. 30-32)
F9: Words in s. 45D(4) 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. 14(5) (with Sch. 11 paras. 30-32)
F10: Word in s. 45D(4) substituted (with effect in accordance with art. 1(2)(a) of the amending S.I.) by The Capital Allowances Act 2001 (Car Emissions) (Extension of First-year Allowances) (Amendment) Order 2021 (S.I. 2021/120), arts. 1(1), 3(b)
F11: S. 45D(5)(6) omitted (with effect in accordance with Sch. 11 paras. 26, 27, 28(1) to the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 11 para. 14(6) (with Sch. 11 paras. 30-32)
F12: Words in s. 45D(8) inserted (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. 14(7)(a) (with Sch. 11 paras. 30-32)
F13: S. 45D(8)(b) and preceding word omitted (with effect in accordance with Sch. 11 paras. 26, 27, 28(1) to the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 11 para. 14(7)(b) (with Sch. 11 paras. 30-32)
F14: S. 45D(9)(10) omitted (with effect in accordance with Sch. 11 paras. 26, 27, 28(1) to the amending Act) by virtue of Finance Act 2009 (c. 10), Sch. 11 para. 14(8) (with Sch. 11 paras. 30-32)
F15: S. 45D(11) inserted (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. 14(9) (with Sch. 11 paras. 30-32)

Modifications

C1: Pt. 2 modified (10.6.2021) by Finance Act 2021 (c. 26), s. 9(1)(a)

Notes on Part 2

Modifications

C1: 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)
C2: 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
C3: 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
C4: 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
C5: Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 19
C6: Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 para. 35
C7: Pt. 2 modified (22.7.2008) by Crossrail Act 2008 (c. 18), Sch. 13 paras. 36, 37
C8: Pt. 2 modified (21.7.2009) by Finance Act 2009 (c. 10), s. 24
C9: Pt. 2 modified (17.7.2013) by Finance Act 2013 (c. 29), s. 73(7)-(11) (with s. 73(6))