Capital Allowances Act 2001 section 45H

Expenditure on environmentally beneficial plant or machinery

Section 45H provided for 100% first-year allowances on expenditure incurred on environmentally beneficial plant or machinery, and was repealed by Finance Act 2019.

• Section 45H originally allowed businesses to claim 100% first-year allowances on capital expenditure for plant or machinery that met certain environmental benefit criteria.
• The provision was designed to encourage investment in environmentally beneficial technologies by allowing the full cost to be written off against taxable profits in the year of purchase.
• Finance Act 2019, section 33(1)(b), repealed this provision, removing the specific first-year allowance for environmentally beneficial plant or machinery.
• Businesses that previously relied on this relief should consider other available capital allowances, such as the annual investment allowance or writing down allowances, when acquiring plant or machinery.

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