Capital Allowances Act 2001 section 45J

Environmentally beneficial components of plant or machinery

Section 45J previously provided for enhanced capital allowances on environmentally beneficial components of plant or machinery but was repealed by Finance Act 2019.

• Section 45J allowed first-year allowances on components of plant or machinery that met environmental benefit criteria.
• The provision was designed to encourage investment in environmentally beneficial technology by offering accelerated tax relief on qualifying components.
• Finance Act 2019, section 33(1)(b), repealed this section, removing the specific enhanced allowance for environmentally beneficial components.
• Following repeal, expenditure on such components may still qualify for other available capital allowances under the general rules, but no longer attracts the specific enhanced relief formerly provided by this section.