B3.324D Expenditure on environmentally beneficial plant or machinery—first-year qualifying expenditure
For expenditure incurred on environmentally beneficial plant and machinery before 6 April 2020 (income tax) or 1 April 2020 (corporation tax), a 100% first-year allowance is available1. This is part of the enhanced capital allowance scheme which also includes allowances on energy-saving plant or machinery (see B3.324). In certain circumstances first-year tax credits may be available to companies (see B3.324H).
FA 2019 has repealed these measures2. See CA23135.
The key conditions to be met before the expenditure can qualify for first-year allowances are that the expenditure must be incurred on new, unused plant or machinery and it must not be long-life asset expenditure (ie on an asset with an estimated useful economic life exceeding 25 years, see B3.344)3.
It must not be excluded by any of the general exclusions (see B3.325), except that plant provided for leasing only qualifies if it is provided for leasing under an excluded lease of background plant and machinery for a building (see B3.340ZA)4.
'Environmentally beneficial plant or machinery' is plant or machinery which, at the time the expenditure is incurred or the contract for its provision is entered into, satisfies the following conditions5:
• it is of a