Capital Allowances Act 2001 section 40

Expenditure incurred for Northern Ireland purposes by small or medium-sized enterprises

Section 40 sets out the conditions under which expenditure by small or medium-sized enterprises on plant or machinery for use primarily in Northern Ireland qualifies as first-year qualifying expenditure.

• Expenditure must have been incurred on or before 11th May 2002 by a small or medium-sized enterprise on plant or machinery intended primarily for use in Northern Ireland.
• The expenditure must not fall within certain exclusions, including miscellaneous exclusions specific to this section, exclusions for plant or machinery partly used outside Northern Ireland, and general exclusions applicable more broadly.
• If the plant or machinery subsequently comes to be used primarily outside Northern Ireland, the first-year qualifying status may be affected under separate clawback provisions.
• This relief is a historical provision that applied only to expenditure incurred up to 11th May 2002 and is no longer available for new expenditure.