Capital Allowances Act 2001 section 45O

Expenditure on plant and machinery for use in freeport tax sites

Section 45O sets out the conditions under which a company's expenditure on plant or machinery for use in a freeport tax site qualifies for first-year allowances.

• The plant or machinery must be new (not second-hand) and intended primarily for use in a designated freeport tax site
• The expenditure must be incurred on or before 30 September 2026 for the purposes of a trade or a concern listed in section 15(1)(a) or (f)
• Only companies within the charge to corporation tax can claim — unincorporated businesses and individuals are excluded
• The relief is subject to various exclusions, including rules on partial use outside freeport tax sites, failure to meet ongoing requirements, and general exclusions