Capital Allowances Act 2001 section 44

Expenditure incurred by small or medium-sized enterprises

Section 44 establishes that capital expenditure incurred by small or medium-sized enterprises qualifies for first-year allowances, subject to certain exclusions.

• Expenditure by a small or medium-sized enterprise (SME) can qualify as first-year qualifying expenditure
• The expenditure must not be excluded by the general exclusions set out elsewhere in the Act
• Expenditure on long-life assets is specifically excluded from qualifying under this provision
• Where the conditions are met, the SME can claim a first-year allowance instead of the standard writing-down allowance