Section 45L | Exclusion of plant or machinery partly for use outside designated assisted areas ^F1

(1)Expenditure on plant or machinery is not first-year qualifying expenditure under section 45K if—^F1

(a)at the time when it is incurred, the company incurring it intends the plant or machinery to be used partly in a non-designated area, and^F1

(b)the main purpose, or one of the main purposes, for which any person is a party to the relevant arrangements is the obtaining of a first-year allowance, or a greater first-year allowance, in respect of the part of the expenditure that is attributable to that intended use in a non-designated area.^F1

(2)For the purposes of subsection (1)(b), the part of the expenditure that is attributable to that intended use in a non-designated area is to be determined on a just and reasonable basis.^F1

(3)In this section—^F1

“non-designated area” means an area which is not a designated assisted area within the meaning of section 45K;

“the relevant arrangements” means—

(a)the transaction under which the expenditure is incurred, and

(b)any scheme or arrangements of which that transaction forms part.