Part 1 First-Year Allowance for Plant and Machinery

Part 2 of CAA 2001 (plant and machinery allowances) is amended as follows.

In section 39 (first-year allowances available for certain types of qualifying expenditure only), at the end insert—

After section 45N insert—

“45O Expenditure on plant and machinery for use in freeport tax sites

(1)     Expenditure incurred by a company on the provision of plant or machinery is first-year qualifying expenditure if conditions A to E are met.

(2)     Condition A is that the plant or machinery is for use primarily in an area which, at the time the expenditure is incurred, is a freeport tax site.

(3)     Condition B is that the plant or machinery is unused and is not second-hand.

(4)     Condition C is that the expenditure is incurred for the purposes of a qualifying activity within section 15(1)(a) or (f).

(5)     Condition D is that the expenditure is incurred on or before 30 September 2026.

(6)     Condition E is that the company is within the