Capital Allowances Act 2001 section 45P

Power to amend conditions

Section 45P gives the Treasury a broad regulation-making power to change the conditions that expenditure on plant and machinery in freeport tax sites must meet in order to qualify for first-year allowances under section 45O.

• The Treasury may add, remove or alter the qualifying conditions for freeport tax site first-year allowances by issuing regulations.
• The core requirement that the plant or machinery must be primarily for use in a freeport tax site cannot be removed by these regulations.
• Regulations may cover matters such as the nature of the expenditure, the company involved, connected persons, accounting records, and steps that must be taken to comply.
• The regulations may amend or repeal provisions of the Capital Allowances Act 2001 itself and, where incidental or consequential, may also modify other Acts of Parliament.