Section 45Q Exclusion of plant or machinery partly for use outside special tax sitesF1F2
This section applies if—
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
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 (F3the “non-qualifying part” of the expenditure).
The F4non-qualifying part of the expenditure is not first-year qualifying expenditure under section 45O.
For the purposes of this section, the F5non-qualifying part of the expenditure is to be determined on a just and reasonable basis.
In this section, “the relevant arrangements” means—
the transaction under which the expenditure on the plant or machinery is incurred, and
any scheme or arrangements of which that transaction forms part.
Annotations
Textual amendments
- F1
Ss. 45O-45R inserted (10.6.2021) by Finance Act 2021 (c. 26), Sch. 22 para. 3
- F2
Words in ss. 45O-45R substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 23 para. 11(b)
- F3
Words in s. 45Q(1)(b) substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 23 para. 12(a)
- F4
Words in s. 45Q(2) substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 23 para. 12(b)
- F5
Words in s. 45Q(3) substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 23 para. 12(b)
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))
- C10
Pt. 2 modified (10.6.2021) by Finance Act 2021 (c. 26), s. 9(1)(a)
Notes on Chapter 4
Modifications
- C1
Pt. 2 modified (10.6.2021) by Finance Act 2021 (c. 26), s. 9(1)(a)