Capital Allowances Act 2001 section 52

First-year allowances

Section 52 sets out who is entitled to a first-year allowance, when the allowance is given, and the percentage rates that apply to different types of qualifying expenditure on plant and machinery.

• To qualify, a person must incur first-year qualifying expenditure and own the plant or machinery at some point during the chargeable period in which the expenditure is incurred.
• Most categories of qualifying expenditure attract a 100% first-year allowance, but special rate expenditure qualifying under section 45S receives only 50%.
• The Treasury may by regulations adjust the allowance percentage for electric vehicle charging point expenditure where the relevant qualifying period is extended.
• The allowance may be claimed in whole or in part, but various anti-avoidance and restriction provisions can reduce or deny it entirely.