{
  "url": "https://openlegislation.uk/capital-allowances-act-2001/section-46",
  "json_url": "https://openlegislation.uk/capital-allowances-act-2001/section-46.json",
  "legislation": "ukpga/2001/2",
  "legislation_title": "Capital Allowances Act 2001",
  "legislation_url": "https://openlegislation.uk/capital-allowances-act-2001",
  "path": "section/46",
  "kind": "section",
  "number": "46",
  "heading": "General exclusions ...",
  "text": "(1) Expenditure within any of the general exclusions in subsection (2) is not first-year qualifying expenditure under any of the following provisions—\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\nsection 45D (expenditure on cars with low CO2 emissions),\nsection 45DA (expenditure on zero-emission goods vehicles),\nsection 45E (expenditure on plant or machinery for gas refuelling station), ...\nsection 45EA (expenditure on plant or machinery for electric vehicle charging point)\nsection 45F (expenditure on plant and machinery for use wholly in a ring fence trade)\n. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\nsection 45K (expenditure on plant and machinery for use in designated assisted areas).\nsection 45O (expenditure on plant and machinery for use in special tax sites).\nsection 45S (expenditure on plant or machinery in other cases)\nsection 45U (expenditure on plant or machinery in cases not falling within section 45S etc)\n(2) The general exclusions are—\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).\n...\n...\nGeneral exclusion 5\nThe expenditure would be long-life asset expenditure but for paragraph 20 of Schedule 3 (transitional provisions).\nGeneral exclusion 6\nThe expenditure is on the provision of plant or machinery for leasing (whether in the course of a trade or otherwise).\nFor this purpose, the letting of a ship on charter, or of any other asset on hire, is to be regarded as leasing (whether or not it would otherwise be so regarded).\nGeneral exclusion 7\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 a trade or business carried on by a person other than the person incurring the expenditure, and\n(b)the obtaining of a first-year 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 8\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).\n(3) Subsection (1) is subject to the following provisions of this section.\n(4) General exclusion 2 does not prevent expenditure being first-year qualifying expenditure under section 45D.\n(4A) General exclusion 6 does not prevent expenditure being first-year qualifying expenditure under section 45S if the plant or machinery is provided for leasing under an excluded lease of background plant or machinery for a building.\n(4B) General exclusion 6 does not prevent expenditure being first-year qualifying expenditure under section 45U if—\n(a) the plant or machinery is provided for leasing to a lessee for use by the lessee wholly, or almost wholly, for the purpose of earning income which is within the charge to tax, or\n(b) the plant or machinery is provided for leasing to a lessee who is resident in the United Kingdom where the circumstances are such that the plant or machinery is not for use (to a significant extent) by the lessee for the purpose of earning income which is from a source outside the United Kingdom and which is outside the charge to tax.\n(4C) For the purposes of subsection (4B) income is to be regarded as being outside the charge to tax if the income arises to a person who under—\n(a) double taxation arrangements, or\n(b) unilateral relief arrangements,\nis afforded or is entitled to claim any relief from the tax chargeable on the income.\n(4D) For this purpose “double taxation arrangements” and “unilateral relief arrangements” have the same meaning as they have in Part 2 of the Taxation (International and Other Provisions) Act 2010 (see sections 2(4) and 8(1) respectively).\n(4E) For the purposes of subsection (4B) it is to be presumed that, unless the contrary is shown, a lessee has made every claim or election for relief from tax, and every claim or election for an exemption from tax, which the lessee is entitled to make.\n(4F) For the purposes of subsection (4B), if there is more than one lessee, references to the lessee are to each of the lessees.\n(4G) For the purposes of subsections (4B) to (4F), any reference to leasing or a lessee includes sub-leasing and a sub-lessee.\n(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .\n(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "Words in s. 46(1) inserted (with effect in accordance with s. 167 of the amending Act) by Finance Act 2003 (c. 14) , Sch. 30 para. 4(1)(a)"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "S. 46(1) entries omitted (21.7.2008) by virtue of Finance Act 2008 (c. 9), s. 76(5)(b)(i) (with s. 76(7)(8))"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "S. 46(1) entry omitted (with effect in accordance with s. 75(5)-(8) of the amending Act) by virtue of Finance Act 2008 (c. 9), s. 75(3)(b)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Words in s. 46(1) omitted (with effect in accordance with s. 33(5) of the amending Act) by virtue of Finance Act 2019 (c. 1), s. 33(2)(b)(iv)(a)"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "Entry in s. 46(1) relating to s. 45D inserted (with effect as mentioned in s. 59 of the amending Act) by Finance Act 2002 (c. 23), s. 59, Sch. 19 para. 4(2)"
    },
    {
      "type": "F",
      "label": "F6",
      "text": "Words in s. 46(1) inserted (with effect in accordance with Sch. 7 para. 7 of the amending Act) by Finance (No. 3) Act 2010 (c. 33), Sch. 7 para. 4"
    },
    {
      "type": "F",
      "label": "F7",
      "text": "Entry in s. 46(1) relating to s. 45E inserted (with effect as mentioned in s. 61of the amending Act) by Finance Act 2002 (c. 23), s. 61, Sch. 20 para. 4"
    },
    {
      "type": "F",
      "label": "F8",
      "text": "Word in s. 46(1) repealed (with effect in accordance with s. 167 of the amending Act) by Finance Act 2003 (c. 14) , Sch. 30 para. 4(1)(b) , 43 Pt. 3(9)"
    },
    {
      "type": "F",
      "label": "F9",
      "text": "Words in s. 46(1) inserted (16.11.2017) by Finance (No. 2) Act 2017 (c. 32), s. 38(4)"
    },
    {
      "type": "F",
      "label": "F10",
      "text": "Entry in s. 46(1) relating to s. 45F inserted (with effect as mentioned in s. 63 of the amending Act) by Finance Act 2002 (c. 23), s. 63, Sch. 21 para. 5"
    },
    {
      "type": "F",
      "label": "F11",
      "text": "Words in s. 46(1) inserted (with effect in accordance with Sch. 11 para. 8 of the amending Act) by Finance Act 2012 (c. 14), Sch. 11 para. 4"
    },
    {
      "type": "F",
      "label": "F12",
      "text": "Words in s. 46(1) inserted (10.6.2021) by Finance Act 2021 (c. 26), Sch. 22 para. 4"
    },
    {
      "type": "F",
      "label": "F13",
      "text": "Words in s. 46(1) substituted (11.7.2023) by Finance (No. 2) Act 2023 (c. 30), Sch. 23 para. 11(c)"
    },
    {
      "type": "F",
      "label": "F14",
      "text": "Words in s. 46(1) inserted (22.2.2024) by virtue of Finance (No. 2) Act 2023 (c. 30), s. 7(4)(a) (as amended by Finance Act 2024 (c. 3), s. 1(2)(a))"
    },
    {
      "type": "F",
      "label": "F15",
      "text": "Words in s. 46(1) inserted (18.3.2026) by Finance Act 2026 (c. 11), s. 29(4)(a)"
    },
    {
      "type": "F",
      "label": "F16",
      "text": "Word in s. 46(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. 3 (with Sch. 11 paras. 30-32)"
    },
    {
      "type": "F",
      "label": "F17",
      "text": "Words in s. 46(2) omitted (with effect in accordance with s. 70(2) of the amending Act) by virtue of Finance Act 2013 (c. 29), s. 70(1)(a)"
    },
    {
      "type": "F",
      "label": "F18",
      "text": "Words in s. 46(2) omitted (with effect in accordance with s. 70(2) of the amending Act) by virtue of Finance Act 2013 (c. 29), s. 70(1)(b)"
    },
    {
      "type": "F",
      "label": "F19",
      "text": "Word in s. 46(2) substituted (with effect in accordance with Sch. 8 para. 15 of the amending Act) by Finance Act 2006 (c. 25), Sch. 8 para. 4(2)(a)"
    },
    {
      "type": "F",
      "label": "F20",
      "text": "Words in s. 46(2) inserted (with effect in accordance with Sch. 8 para. 15 of the amending Act) by Finance Act 2006 (c. 25), Sch. 8 para. 4(2)(b)"
    },
    {
      "type": "F",
      "label": "F21",
      "text": "Entry relating to s. 46(3)(4) inserted (with effect as mentioned in s. 59 of the amending Act) by Finance Act 2002 (c. 23), s. 59, Sch. 19 para. 4(3)"
    },
    {
      "type": "F",
      "label": "F22",
      "text": "S. 46(4A) inserted (22.2.2024) by Finance (No. 2) Act 2023 (c. 30), s. 7(4)(b) (as amended by Finance Act 2024 (c. 3), s. 1(2)(a))"
    },
    {
      "type": "F",
      "label": "F23",
      "text": "S. 46(4B)-(4G) inserted (18.3.2026) by Finance Act 2026 (c. 11), s. 29(4)(b)"
    },
    {
      "type": "F",
      "label": "F24",
      "text": "S. 46(5)(6) omitted (with effect in accordance with s. 33(5) of the amending Act) by virtue of Finance Act 2019 (c. 1), s. 33(2)(b)(iv)(b)"
    },
    {
      "type": "F",
      "label": "F25",
      "text": "Words in s. 46 heading omitted (21.7.2008) by virtue of Finance Act 2008 (c. 9), s. 76(5)(b)(ii) (with s. 76(7)(8))"
    },
    {
      "type": "C",
      "label": "C1",
      "text": "S. 46(2) restricted (10.6.2021) by Finance Act 2021 (c. 26), s. 9(9)"
    },
    {
      "type": "C",
      "label": "C2",
      "text": "Pt. 2 modified (10.6.2021) by Finance Act 2021 (c. 26), s. 9(1)(a)"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/2001/2/section/46",
    "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."
}