Capital Allowances Act 2001 section 212U

Cap on first-year allowances: expenditure on plant and machinery for use in designated assisted areas

Section 212U places a cap of €125 million on the total first-year allowances that can be claimed under section 45K for plant and machinery expenditure relating to a single investment project within a designated assisted area.

• First-year allowances for plant and machinery in designated assisted areas are subject to a cumulative cap of €125 million per single investment project within each area
• The cap applies across all persons — if previous allowances have already been made to any person on the same project and area, the investor's claim is restricted or blocked entirely once the threshold is reached
• Where expenditure is incurred in a currency other than the euro, it must be converted using the spot exchange rate on the day the expenditure is incurred
• The Treasury has the power to increase the €125 million cap by regulations