# Capital Allowances Act 2001, Section 45L: Exclusion of plant or machinery partly for use outside designated assisted areas


(1) Expenditure on plant or machinery is not first-year qualifying expenditure under section 45K if—
(a) at the time when it is incurred, the company incurring it intends the plant or machinery to be used partly in a non-designated area, and
(b) the main purpose, or one of the main purposes, for which any person is a 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 a non-designated area.
(2) For the purposes of subsection (1)(b), the part of the expenditure that is attributable to that intended use in a non-designated area is to be determined on a just and reasonable basis.
(3) In this section—
“non-designated area” means an area which is not a designated assisted area within the meaning of section 45K;
“the relevant arrangements” means—
(a)the transaction under which the expenditure is incurred, and
(b)any scheme or arrangements of which that transaction forms part.

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Source: https://www.legislation.gov.uk/ukpga/2001/2/section/45L (the official version)
Page: https://openlegislation.uk/capital-allowances-act-2001/section-45L
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.