Capital Allowances Act 2001 section 45AA

Section 45A exclusion: feed-in tariffs and renewable heat incentives

Section 45AA provides an exception to the general exclusion of certain energy-saving plant from first-year allowances, specifically where the plant or machinery is linked to feed-in tariff or renewable heat incentive schemes.

• Section 45A generally excludes certain plant and machinery from qualifying for 100% first-year allowances under the energy-saving provisions.
• Section 45AA carves out an exception to that exclusion for plant or machinery that is connected with feed-in tariff schemes or renewable heat incentive schemes.
• This means that plant or machinery receiving payments under feed-in tariffs or renewable heat incentives can still qualify for enhanced first-year allowances, despite the general restriction in section 45A.
• This provision was introduced by Finance Act 2019, section 33(1)(a).

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