C1C5C4C3Part 2 Plant and machinery allowances
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
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
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
Chapter 4 First-year qualifying expenditure
Types of expenditure which may qualify for first-year allowances
F740 Expenditure incurred for Northern Ireland purposes by small or medium-sized enterprises
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F741 Miscellaneous exclusions from section 40 (expenditure for Northern Ireland purposes etc.)
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F742 Exclusion of plant or machinery partly for use outside Northern Ireland
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F743 Effect of plant or machinery subsequently being primarily for use outside Northern Ireland
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F844 Expenditure incurred by small or medium-sized enterprises
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F945ICT expenditure incurred by small enterprises
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45AF1 Expenditure on energy-saving plant or machinery
1
Expenditure is first-year qualifying expenditure if—
a
it is expenditure on energy-saving plant or machinery that is unused and not second-hand,
b
it is incurred on or after 1st April 2001, and
c
it is not excluded by section 46 (general exclusions).
2
Energy-saving plant or machinery means plant or machinery in relation to which the following conditions are met—
a
when the expenditure is incurred, or
b
when the contract for the provision of the plant or machinery is entered into.
3
The conditions are that the plant or machinery—
a
is of a description specified by Treasury order, and
b
meets the energy-saving criteria specified by Treasury order for plant or machinery of that description.
4
Any such order may make provision by reference to any technology list, or product list, issued by the Secretary of State (whether before or after the coming into force of this section).
45B Certification of energy-saving plant and machinery
1
The Treasury may by order provide that, in such cases as may be specified in the order, no section 45A allowance may be made unless a relevant certificate of energy efficiency is in force.
A “ section 45A allowance ” means a first-year allowance in respect of expenditure that is first-year qualifying expenditure under section 45A.
2
A certificate of energy efficiency is one certifying that—
a
particular plant or machinery, or
b
plant or machinery constructed to a particular design,
meets the energy-saving criteria specified in relation to that description of plant or machinery by order under section 45A.
3
A relevant certificate of energy efficiency means one issued—
a
by the Secretary of State or a person authorised by the Secretary of State;
b
in the case of plant or machinery used or for use in Scotland, by the Scottish Ministers or a person authorised by them;
c
in the case of plant or machinery used or for use in Wales, by the National Assembly for Wales or a person authorised by it;
d
in the case of plant or machinery used or for use in Northern Ireland, by the Department of Enterprise, Trade and Investment in Northern Ireland or a person authorised by it.
4
If a certificate of energy efficiency is revoked—
a
the certificate is to be treated for the purposes of this section as if it had never been issued, and
b
all such assessments and adjustments of assessments are to be made as are necessary as a result of the revocation.
5
If a person who has made a tax return becomes aware that, as a result of the revocation of a certificate of energy efficiency after the return was made, the return has become incorrect, he must give notice to F6an officer of Revenue and Customs specifying how the return needs to be amended.
6
The notice must be given within 3 months beginning with the day on which the person first became aware that anything in the tax return had become incorrect because of the revocation of the certificate.
45C Energy-saving components of plant or machinery
1
This section applies for the purpose of apportioning expenditure incurred on plant or machinery if one or more components of the plant or machinery (but not all of it) is of a description specified by Treasury order under section 45A(3).
2
If—
a
only one of the components is of such a description, and
b
an amount is specified by the order in respect of that component,
the part of the expenditure that is section 45A expenditure must not exceed that amount.
3
If—
a
more than one of the components are of such a description, and
b
an amount is specified by the order in respect of each of those components,
the part of the expenditure that is section 45A expenditure must not exceed the total of those amounts.
4
If the expenditure is treated under this Act as incurred in instalments, the proportion of each instalment that is section 45A expenditure is the same as the proportion of the whole of the expenditure that is section 45A expenditure.
5
If this section applies, the expenditure is not apportioned under section 562(3) (apportionment where property sold with other property).
6
In this section “ section 45A expenditure ” means expenditure that is first-year qualifying expenditure under section 45A.
45DF2 Expenditure on cars with low carbon dioxide emissions
1
Expenditure is first-year qualifying expenditure if—
a
it is incurred in the period beginning with 17th April 2002 and ending with 31st March F102013,
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,
c
the car—
i
is an electrically-propelled car, or
ii
is a car with low CO 2 emissions, and
d
the expenditure is not excluded by section 46 (general exclusions).
2
For the purposes of this section a car with low CO 2 emissions is a car which 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 an EC certificate of conformity, or a UK approval certificate, that specifies—
a
in the case of a car other than a bi-fuel car, a CO 2 emissions figure in terms of grams per kilometre driven, or
b
in the case of a bi-fuel car, separate CO 2 emissions figures in terms of grams per kilometre driven for different fuels.
4
The second condition is that the applicable CO 2 emissions figure in the case of the car does not exceed F11110 grams per kilometre driven.
5
For the purposes of subsection (4) the applicable CO 2 emissions figure in the case of a car other than a bi-fuel car is—
a
where the EC certificate of conformity or UK approval certificate specifies only one CO 2 emissions figure, that figure, and
b
where the certificate specifies more than one CO 2 emissions figure, the figure specified as the CO 2 emissions (combined) figure.
6
For the purposes of subsection (4) the applicable CO 2 emissions figure in the case of a bi-fuel car is—
a
where the EC certificate of conformity or UK approval certificate specifies more than one CO 2 emissions figure in relation to each fuel, the lowest CO 2 emissions (combined) figure specified, and
b
in any other case, the lowest CO 2 figure specified by the certificate.
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—
a
includes a reference to a mechanically propelled road vehicle of a type commonly used as a hackney carriage, but
b
does not include a reference to a motorcycle.
9
For the purposes of this section, a car is an electrically-propelled car only if—
a
it is propelled solely by electrical power, and
b
that power is derived from—
i
a source external to the vehicle, or
ii
an electrical storage battery which is not connected to any source of power when the vehicle is in motion.
10
In this section—
“ bi-fuel car ” means a car which is capable of being propelled by—
- a
petrol and road fuel gas, or
- b
diesel and road fuel gas;
- a
“ car ” has the meaning given by section 81 (extended meaning of “car");
“ diesel ” means any diesel fuel within the definition in Article 2 of Directive 98/70/ EC of the European Parliament and of the Council;
“ EC certificate of conformity ” means a certificate of conformity issued by a manufacturer under any provision of the law of a member State implementing Article 6 of Council Directive 70/156/ EEC , as amended;
“ petrol ” has the meaning given by Article 2 of Directive 98/70/ EC of the European Parliament and of the Council;
“ road fuel gas ” has the same meaning as in section 168AB of ICTA ;
“ UK approval certificate ” means a certificate issued under—
- a
section 58(1) or (4) of the Road Traffic Act 1988, or
- b
Article 31A(4) or (5) of the Road Traffic (Northern Ireland) Order 1981.
- a
45EF3 Expenditure on plant or machinery for gas refuelling station
1
Expenditure is first-year qualifying expenditure if—
a
it is incurred in the period beginning with 17th April 2002 and ending with 31st March F122013,
b
it is expenditure on plant or machinery for a gas refuelling station where the plant or machinery is unused and not second-hand, and
c
it is not excluded by section 46 (general exclusions).
2
For the purposes of this section expenditure on plant or machinery for a gas refuelling station is expenditure on plant or machinery installed at a gas refuelling station for use solely for or in connection with refuelling vehicles with natural gasF13, biogas or hydrogen fuel.
3
For the purposes of subsection (2) the plant or machinery which is for use for or in connection with refuelling vehicles with natural gasF13, biogas or hydrogen fuel includes—
a
any storage tank for natural gas F13, biogas or hydrogen fuel,
b
any compressor, pump, control or meter used for or in connection with refuelling vehicles with natural gasF13, biogas or hydrogen fuel, and
c
any equipment for dispensing natural gasF13, biogas or hydrogen fuel to the fuel tank of a vehicle.
4
For the purposes of this section—
F14“biogas” means gas produced by the anaerobic conversion of organic matter and used for propelling vehicles;
“ gas refuelling station ” means any premises, or that part of any premises, where vehicles are refuelled with natural gasF13, biogas or hydrogen fuel;
“ hydrogen fuel ” means a fuel consisting of gaseous or cryogenic liquid hydrogen which is used for propelling vehicles;
“ vehicle ” means a mechanically propelled road vehicle.
45FF4 Expenditure on plant and machinery for use wholly in a ring fence trade
1
Expenditure is first-year qualifying expenditure if—
a
it is incurred on or after 17th April 2002,
b
it is incurred by a company,
c
it is incurred on the provision of plant or machinery for use wholly for the purposes of a ring fence trade, and
d
it is not excluded by section 46 (general exclusions).
2
This section is subject to section 45G (plant or machinery used for less than five years in a ring fence trade).
3
In this section “ ring fence trade ” means a ring fence trade in respect of which tax is chargeable under section 501A of the Taxes Act 1988 (supplementary charge in respect of ring fence trades).
45GF5 Plant or machinery used for less than five years in a ring fence trade
1
Expenditure incurred by a company on the provision of plant or machinery is to be treated as never having been first-year qualifying expenditure under section 45F if the plant or machinery—
a
is at no time in the relevant period used in a ring fence trade carried on by the company or a company connected with it, or
b
is at any time in the relevant period used for a purpose other than that of a ring fence trade carried on by the company or a company connected with it.
2
For the purposes of this section “ the relevant period ” means whichever of the following periods, beginning with the incurring of the expenditure, first ends, namely—
a
the period ending with the fifth anniversary of the incurring of the expenditure, or
b
the period ending with the day preceding the first occasion on which the plant or machinery, after becoming owned by the company which incurred the expenditure, is not owned by a company which is either that company or a company connected with it.
3
All such assessments and adjustments of assessments are to be made as are necessary to give effect to subsection (1).
4
If a person who has made a return becomes aware that, after making it, anything in it has become incorrect because of the operation of this section, he must give notice to F6an officer of Revenue and Customs specifying how the return needs to be amended.
5
The notice must be given within 3 months beginning with the day on which the person first became aware that anything in the return had become incorrect because of the operation of this section.
6
In this section “ ring fence trade ” has the same meaning as in section 45F.
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. 34) (as amended (20.2.2003) by S.I. 2003/333, art. 14)