Capital Allowances Act 2001 section 45M

Exclusions from allowances under section 45K

Section 45M sets out the circumstances in which expenditure on plant and machinery in designated assisted areas is excluded from qualifying for first-year allowances under section 45K, and provides for the withdrawal of allowances already given.

• Expenditure is excluded where the business is an "undertaking in difficulty" or is subject to an outstanding order to repay unlawful State aid
• Expenditure in certain sectors — including fishery, coal, steel, shipbuilding, transport, energy, broadband, waste management and agriculture — is excluded from the allowance
• Expenditure is excluded where a relevant State aid grant or payment has been made towards it (or related expenditure on the same project), and allowances already given must be withdrawn if such a grant or payment is made within three years
• Large companies (those that are not SMEs under the EU General Block Exemption Regulation) are excluded from the allowance in certain assisted areas unless additional conditions are met