Section 46 General exclusions ...
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Amendments
Heading words omitted by Finance Act 2008 section 76(5)(b)(ii) from 21 July 2008.
(1) Expenditure within any of the general exclusions in subsection (2) is not first-year qualifying expenditure under [any of the following provisions]1—
...2
...3
...2
[...4
section 45A (expenditure on energy-saving plant or machinery).]5
[section 45D (expenditure on cars with low CO2 emissions),]6
[section 45E (expenditure on plant or machinery for gas refueling station)]7 [...8
section 45F (expenditure on plant and machinery for use wholly in a ring fence trade).]9
[section 45H (expenditure on environmentally benefical plant or machinery).]10
Amendments
1 Inserted by Finance Act 2003 section 167 and Schedule 30 para 4(1)(a).
2 Omitted by Finance Act 2008 section 76(5)(b)(i) from 21 July 2008.
3 Omitted by Finance Act 2008 section 75(3)(b) for expenditure incurred on or after 1 April 2008 for corporation tax purposes and 6 April 2008 for income tax purposes.
4 Repealed by Finance Act 2002 section 141 Schedule 40 Part 3(7) with effect for expenditure incurred after 16 April 2002.
5 Inserted by Finance Act 2001 section 65 and Schedule 17 para 3.
6 Inserted by Finance Act 2002 section 59 and Schedule 19 para 4(2) for expenditure incurred on or after 17 April 2002.
7 Inserted by Finance Act 2002 section 61 and Schedule 20 para 4 for expenditure incurred on or after 17 April 2002.
8 Omitted by Finance Act 2003 section 167 and Schedule 30 para 4(1)(b) for expenditure incurred on or after 1 April 2003.
9 Inserted by Finance Act 2002 section 63 and Schedule 21 para 5 for expenditure incurred on or after 17 April 2002.
10 Inserted by Finance Act 2003 section 167 and Schedule 30 para 4(1)(c) for expenditure incurred on or after 1 April 2003.
(2) The general exclusions are—
General exclusion 1
The expenditure is incurred in the chargeable period in which the qualifying activity is permanently discontinued.
General exclusion 2
The expenditure is incurred on the provision of a car (as defined by section 81).
General exclusion 3
The expenditure is of the kind described in section 94 (ships).
General exclusion 4
The expenditure is of the kind described in section 95 (railway assets).
General exclusion 5
The expenditure would be long-life asset expenditure but for paragraph 20 of Schedule 3 (transitional provisions).
General exclusion 6
The expenditure is on the provision of plant or machinery for leasing (whether in the course of a trade or otherwise). For 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).
General exclusion 7
The circumstances of the incurring of the expenditure are that—
(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
(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.
General exclusion 8
[Any]1 of the following sections applies—
section 13 (use for qualifying activity of plant or machinery provided for other purposes);
[section 13A (use for other purposes of plant or machinery provided for long funding leasing);]2
section 14 (use for qualifying activity of plant or machinery which is a gift).
This is subject to section 161 (pre-trading expenditure on mineral exploration and access).
Amendments
1 Substituted by Finance Act 2006 section 81 and Schedule 8 para 4(2)(a).
2 Inserted by Finance Act 2006 section 81 and Schedule 8 para 4(2)(b).
(3) Subsection (1) is subject to the following provisions of this section.
Amendments
Subs (3) inserted by Finance Act 2002 section 59 and Schedule 19 para 4(3) for expenditure incurred on or after 17 April 2002.
(4) General exclusion 2 does not prevent expenditure being first-year qualifying expenditure under section 45D.
Amendments
Subs (4) inserted by Finance Act 2002 section 59 and Schedule 19 para 4(3) for expenditure incurred on or after 17 April 2002.
(5) General exclusion 6 does not prevent expenditure being first-year qualifying expenditure under any of the following provisions—
section 45A, if the condition in subsection (6) is met,
section 45H, if the condition in subsection (6) is met.
Amendments
Subs (5) substituted by Finance Act 2006 Schedule 9 para 11(2) for expenditure incurred on or after 1 April 2006.
(6) The condition is that the plant or machinery is provided for leasing under an excluded lease of background plant or machinery for a building, within the meaning given by section 70R.
Amendments
Subs (6) substituted by Finance Act 2006 Schedule 9 para 11(2) for expenditure incurred on or after 1 April 2006.
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