Formula 1 Power Unit Financial Regulations 
1 
06 December 2023 
© 2023 Fédération Internationale de l’Automobile 
 
Issue 4  
FORMULA 1 POWER UNIT FINANCIAL REGULATIONS 
PUBLISHED ON 06 DECEMBER 2023 
ISSUE 4  
 
CONTENTS 
 
Art 
CONTENTS 
Page(s) 
1. 
GENERAL PRINCIPLES ........................................................................................................ 2 
2. 
POWER UNIT MANUFACTURER OBLIGATIONS .................................................................... 3 
3. 
EXCLUSIONS ..................................................................................................................... 5 
4. 
ADJUSTMENTS .................................................................................................................. 8 
5. 
REPORTING REQUIREMENTS ........................................................................................... 13 
6. 
COST CAP ADMINISTRATION ........................................................................................... 14 
7. 
COST CAP ADJUDICATION PANEL .....................................................................................20 
8. 
CATEGORIES OF BREACH ................................................................................................. 24 
9. 
SANCTIONS FOR BREACH................................................................................................. 26 
APPENDIX 1  DEFINITIONS AND INTERPRETATION......................................................................... 29 
APPENDIX 2  ELIGIBLE TEST BENCHES ........................................................................................... 52 
APPENDIX 3  TRANSITIONAL CAPITAL EXPENDITURE QUALIFYING ASSETS ...................................... 56

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1. 
GENERAL PRINCIPLES  
Scope 
1.1 
These Power Unit Financial Regulations come into force on 1 January 2023. They form part of 
the terms and conditions for the homologation of Power Units to be supplied to F1 Teams for 
participation in the Championship from 2026 onwards. Each Power Unit Manufacturer 
intending to homologate Power Units for supply to an F1 Team(s) for participation in the 
Championship from 2026 onwards agrees to be bound by, and undertakes to comply with, 
these Power Unit Financial Regulations from the start of its N-3 Full Year Reporting Period. 
Objectives 
1.2 
These Power Unit Financial Regulations introduce a Power Unit Cost Cap that limits certain 
costs that may be incurred by or on behalf of a Power Unit Manufacturer or any other entity 
within a Power Unit Manufacturer’s Legal Group Structure in each Full Year Reporting Period, 
while leaving that Power Unit Manufacturer free to decide how to allocate resources within 
that Power Unit Cost Cap.  
1.3 
These Power Unit Financial Regulations are designed to help achieve the following objectives 
(the "Objectives"): 
(a) 
to promote the long-term competitive balance of the Championship in respect of 
Power Units; 
(b) 
to promote the long-term sporting fairness of the Championship in respect of Power 
Units; and 
(c) 
to ensure the long-term financial stability and sustainability of the Power Unit 
Manufacturers,  
while preserving the unique technology and engineering challenge of Formula 1. 
1.4 
These Power Unit Financial Regulations will be interpreted and applied by the Cost Cap 
Administration, the Cost Cap Adjudication Panel and the ICA in a consistent manner that treats 
all Power Unit Manufacturers equally and that advances the Objectives. 
1.5 
The definitive version of these Power Unit Financial Regulations is the English version, which 
will be used should any dispute arise as to their interpretation. Defined words and phrases in 
these Power Unit Financial Regulations (denoted by initial capital letters) have the meaning 
indicated in Appendix 1 to these Power Unit Financial Regulations, unless otherwise defined 
in the body of these Power Unit Financial Regulations. Unless otherwise specified, references 
to "Articles" are to Articles of these Power Unit Financial Regulations, references to "may" 
shall mean in the sole discretion of such person or entity (as the context so requires), and any 
phrase introduced by the terms "including", "include", "in particular" or any similar expression 
shall be construed as illustrative and not as limiting the sense of the words preceding those 
terms.  
1.6 
If any part of these Power Unit Financial Regulations is found by a court or authority of 
competent jurisdiction to be illegal, invalid or unenforceable, that part will be deemed not to 
form part of these Power Unit Financial Regulations, and the legality, validity or enforceability 
of the remainder of these Power Unit Financial Regulations will not be affected.

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1.7 
The Cost Cap Administration shall periodically review these Power Unit Financial Regulations. 
These Power Unit Financial Regulations may be amended and/or supplemented by the FIA 
World Motor Sport Council from time to time. 
Accountability  
1.8 
Each Power Unit Manufacturer must ensure that all Personnel are made aware: 
(a) 
of the Objectives, content and substance of these Power Unit Financial Regulations; 
and 
(b)         that the Power Unit Manufacturer is subject to these Power Unit Financial Regulations. 
1.9 
Each Power Unit Manufacturer must ensure that all relevant Personnel are appropriately 
informed and trained with respect to the ways in which their areas of responsibility may 
impact the Power Unit Manufacturer’s compliance with these Power Unit Financial 
Regulations.   
1.10 
Each Power Unit Manufacturer must ensure that the FIA ethics and compliance policy in force 
from time to time with respect to these Power Unit Financial Regulations is clearly 
communicated to all Personnel. 
2. 
POWER UNIT MANUFACTURER OBLIGATIONS 
2.1 
Each Power Unit Manufacturer must: 
(a) 
demonstrate its ongoing compliance with the Power Unit Cost Cap by submitting 
Reporting Documentation in respect of its Reporting Group to the Cost Cap 
Administration by the Reporting Deadline in respect of each Reporting Period and by 
providing any further information requested from time to time by the Cost Cap 
Administration;  
(b) 
cooperate fully and in a timely manner with the Cost Cap Administration in the 
exercise of its regulatory function, including any investigation conducted by or on 
behalf of the Cost Cap Administration pursuant to these Power Unit Financial 
Regulations and/or with the Financial Regulations;  
(c) 
provide any information and documentation requested by or on behalf of the Cost 
Cap Administration relevant to any actual, potential or suspected instance of non-
compliance with these Power Unit Financial Regulations and/or with the Financial 
Regulations; and 
(d) 
faithfully execute its obligations under these Power Unit Financial Regulations and act 
at all times in a spirit of Good Faith and cooperation.  
Cap on Relevant Costs 
2.2 
A Power Unit Manufacturer must: 
(a) 
determine and report its Relevant Costs against the Power Unit Cost Cap in the Power 
Unit Manufacturer’s Presentation Currency; and 
(b) 
not have Relevant Costs in excess of the Power Unit Cost Cap in the applicable Full 
Year Reporting Period.

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The Power Unit Cost Cap 
2.3 
The amount of the "Power Unit Cost Cap" shall be as follows: 
(a) 
in the Full Year Reporting Periods ending on 31 December 2023, 31 December 2024 
and 31 December 2025, US Dollars 95,000,000, adjusted for Indexation; and 
(b) 
in the Full Year Reporting Period ending on 31 December 2026 and in each subsequent 
Full Year Reporting Period, US Dollars 130,000,000, adjusted for Indexation. 
2.4 
Where a Power Unit Manufacturer has a Presentation Currency other than US Dollars, the 
Power Unit Cost Cap for that Power Unit Manufacturer shall be converted from US Dollars 
into that Power Unit Manufacturer’s Presentation Currency at the Initial Applicable Rate.  For 
illustrative purposes, the amount of the Power Unit Cost Cap in selected Presentation 
Currencies for the Full Year Reporting Period ending on 31 December 2023, as referred to in 
Article 2.3(a) (assuming Indexation of zero) is as follows: 
US Dollars  
(‘000) 
Pounds Sterling  
(‘000) 
Euros  
(‘000) 
95,000 
76,459 
90,210 
 
Reporting Group 
2.5 
For the purposes of reporting Total Costs of the Reporting Group, a Power Unit 
Manufacturer’s Reporting Group shall comprise the Power Unit Manufacturer together with, 
where the Power Unit Manufacturer has incurred less than 95% of the costs of the Power Unit 
Activities undertaken by or on behalf of the Power Unit Manufacturer or any other entity 
within the Power Unit Manufacturer’s Legal Group Structure in the Reporting Period, such 
additional entities within the Power Unit Manufacturer's Legal Group Structure as are 
determined in accordance with Article 2.6. 
2.6 
The additional entities to be included within the Reporting Group where a Power Unit 
Manufacturer has incurred less than 95% of the costs of the Power Unit Activities undertaken 
by or on behalf of that Power Unit Manufacturer or any other entity within that Power Unit 
Manufacturer’s Legal Group Structure in the Reporting Period shall be the additional entities 
(other than the Power Unit Manufacturer) within the Power Unit Manufacturer’s Legal Group 
Structure as selected by the Power Unit Manufacturer , until the entities included within the 
Reporting Group have incurred, in aggregate, 95% or more of the costs of the Power Unit 
Activities undertaken by or on behalf of the Power Unit Manufacturer or any other entity 
within the Power Unit Manufacturer’s Legal Group Structure in the Reporting Period.  
2.7 
In addition to those entities included in the Reporting Group pursuant to Articles 2.5 and 2.6, 
a Power Unit Manufacturer may elect to include additional entities in its Reporting Group 
from within its Legal Group Structure which have incurred costs of Power Unit Activities 
undertaken on behalf of the Power Unit Manufacturer or any other entity within the Power 
Unit Manufacturer’s Legal Group Structure in the Reporting Period. 
2.8 
For the purposes of Articles 2.5 to 2.7 (inclusive), the calculation of the costs of Power Unit 
Activities undertaken by or on behalf of the Power Unit Manufacturer or any other entity 
within the Power Unit Manufacturer’s Legal Group Structure in the Reporting Period:

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(a) 
shall not include Finance Costs and costs Directly Attributable to Marketing Activities; 
(b) 
shall be made having adjusted out any amounts in connection with Power Unit 
Activities recharged from one member of the Power Unit Manufacturer’s Legal Group 
Structure to another. 
2.9 
In the calculation of Relevant Costs, the costs of any Power Unit Activities incurred by entities 
within the Power Unit Manufacturer's Legal Group Structure but outside its Reporting Group, 
other than Finance Costs and costs Directly Attributable to Marketing Activities undertaken 
by any such entity, must either be: 
(a) 
recharged at Fair Value to a Reporting Group Entity and thereby included within Total 
Costs of the Reporting Group; or  
(b) 
included in Relevant Costs at Fair Value by way of an Adjustment to Total Costs of the 
Reporting Group, as a Related Party Transaction pursuant to Article 4.1(a). 
2.10 
The Power Unit Manufacturer should seek clarification from the Cost Cap Administration if it 
is uncertain whether an entity should be included in its Reporting Group. 
3. 
EXCLUSIONS 
3.1 
In calculating Relevant Costs, the following costs and amounts within Total Costs of the 
Reporting Group must be excluded ("Excluded Costs"): 
(a) 
All costs Directly Attributable to Marketing Activities; 
(b) 
With respect to Heritage Asset Activities: 
(i) 
all costs Directly Attributable to Heritage Asset Activities; and 
(ii) 
if the Power Unit Manufacturer can prove to the satisfaction of the Cost Cap 
Administration that an identifiable portion of the Consideration provided to 
any Heritage Asset Personnel relates to Heritage Asset Activities, that portion 
of those costs, together with the associated employer’s social security 
contributions; 
(c) 
All Finance Costs; 
(d) 
All Corporate Income Tax; 
(e) 
With respect to Non-Power Unit Activities:  
(i) 
all costs Directly Attributable to Non-Power Unit Activities; and 
(ii) 
if the Power Unit Manufacturer can prove to the satisfaction of the Cost Cap 
Administration that an identifiable portion of the following costs relates to 
Non-Power Unit Activities, that portion of those costs: 
(A) 
Consideration provided to, and associated employer’s social security 
contributions incurred in respect of, any Personnel engaged in both 
Power Unit Activities and Non-Power Unit Activities;

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(B) 
electricity, gas and water costs incurred in the course of both Power 
Unit Activities and Non-Power Unit Activities;  
(C) 
lease costs in respect of plant and equipment used in the course of 
both Power Unit Activities and Non-Power Unit Activities; and 
(D) 
costs of parts and consumables, and outsourced services, incurred for 
the maintenance of Buildings or an item of plant or equipment used 
in the course of both Power Unit Activities and Non-Power Unit 
Activities; 
(f) 
All costs Directly Attributable to Human Resources Activities, Finance Activities or 
Legal Activities; 
(g) 
All Property Costs; 
(h) 
All Employee Bonus Costs, subject to a maximum amount in any Full Year Reporting 
Period of the lower of: 
 
(i)          20% of the Total Fixed Employee Remuneration; and  
 
(ii) 
US Dollars 7,500,000, adjusted for Indexation; 
 
plus the amount of any employer’s social security contributions in respect of the 
amount of such Employee Bonus Costs excluded pursuant to this Article 3.1(h); 
  
(i) 
All registration and administration fees payable to the FIA by a Power Unit 
Manufacturer in relation to the registration and homologation of its Power Units in 
respect of the Championship taking place in the applicable Reporting Period; 
(j) 
All Financial Penalties in respect of any breach of these Power Unit Financial 
Regulations; 
(k) 
All amounts of depreciation, amortisation, impairment loss, and amounts as a result 
of revaluation or disposal of tangible assets and intangible assets; 
(l) 
All foreign exchange gains and losses recognised in profit or loss, whether arising from 
settlement and/or re-measurement of monetary items denominated in a foreign 
currency, or otherwise; 
(m) 
Where a Reporting Group Entity is required by applicable laws to pay employer’s social 
security contributions, the amount by which such mandatory contributions exceed 
13.8% of the Total Employee Remuneration; 
(n) 
All Health And Safety Costs; 
(o) 
With respect to Customer Team Power Unit Activities: 
(i) 
All costs Directly Attributable to Customer Team Power Unit Activities; and 
(ii) 
If a Power Unit Manufacturer can prove to the satisfaction of the Cost Cap 
Administration that an identifiable portion of the following costs relates to 
Customer Team Power Unit Activities, that portion of those costs:

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(A) 
Consideration provided to, and associated employer’s social security 
contributions incurred in respect of, any Personnel engaged in Power 
Unit Activities; 
(B) 
electricity, gas and water costs incurred in the course of Power Unit 
Activities; 
(C) 
lease costs in respect of plant and equipment used in the course of 
Power Unit Activities; and 
(D) 
costs of parts and consumables, and outsourced services, incurred for 
the maintenance of Buildings or an item of plant or equipment used 
in the course of Power Unit Activities; 
(p) 
With respect to Current Generation Power Unit Activities and in respect of the Full 
Year Reporting Periods ending on 31 December 2023, 31 December 2024 and 31 
December 2025 only: 
(i) 
All costs Directly Attributable to Current Generation Power Unit Activities; and 
(ii) 
If a Power Unit Manufacturer can prove to the satisfaction of the Cost Cap 
Administration that an identifiable portion of the following costs relates to 
Current Generation Power Unit Activities, that portion of those costs: 
(A) 
Consideration provided to, and associated employer’s social security 
contributions incurred in respect of, any Personnel engaged in Power 
Unit Activities; 
(B) 
electricity, gas and water costs incurred in the course of Power Unit 
Activities; 
(C) 
lease costs in respect of plant and equipment used in the course of 
Power Unit Activities; and 
(D) 
costs of parts and consumables, and outsourced services, incurred for 
the maintenance of Buildings or an item of plant or equipment used 
in the course of Power Unit Activities; 
(q) 
All Employee Termination Benefits (together with associated employer’s social 
security contributions), incurred in the Full Year Reporting Periods ending on 31 
December 2023, 31 December 2024 and 31 December 2025; 
(r) 
All costs of Consideration other than Employee Termination Benefits (together with 
associated employer’s social security contributions) provided to a Reassigned 
Employee prior to the date on which they became a Reassigned Employee, subject to 
a maximum aggregate amount of US Dollars 3,000,000, adjusted for Indexation;  
(s) 
All flight, rail travel and hotel costs in connection with a Competition or Testing of 
Current Cars by Personnel; 
(t) 
All costs Directly Attributable to entertainment provided for the benefit of all 
employees of all Reporting Group Entities on a substantially equal basis, subject to a 
maximum amount of US Dollars 1,000,000, adjusted for Indexation; and

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(u) 
All Sustainability Initiative Costs. 
3.2 
If a cost within Total Costs of the Reporting Group is Directly Attributable to any combination 
of the following activities: 
(a) 
Marketing Activities;  
(b) 
Heritage Asset Activities;  
(c) 
Non-Power Unit Activities;  
(d) 
Human Resources Activities;  
(e) 
Finance Activities; 
(f) 
Legal Activities; 
(g) 
Health And Safety Costs; 
(h) 
Customer Team Power Unit Activities; 
(i) 
Current Generation Power Unit Activities; and 
(j) 
Sustainability Initiative Costs,  
such cost shall be an Excluded Cost.  
3.3 
For the purposes of this Article 3, where a Power Unit Manufacturer has a Presentation 
Currency other than US Dollars, amounts expressed in US Dollars shall be converted into that 
Power Unit Manufacturer’s Presentation Currency at the Initial Applicable Rate. 
4. 
ADJUSTMENTS 
4.1 
Unless stated otherwise in this Article 4, in calculating Relevant Costs, the following 
adjustments to Total Costs of the Reporting Group must be made: 
(a) 
Related Party Transactions, Exchange Transactions and F1 Team Transactions: 
Any Related Party Transaction, Exchange Transaction or F1 Team Transaction in 
connection with a Power Unit Activity must be included in Relevant Costs at not less 
than Fair Value. 
 
(b) 
Offsetting of income and costs: 
If a Reporting Group Entity has offset any income or gains within its Total Costs, or any 
costs or losses within its revenue, the Power Unit Manufacturer must make an upward 
adjustment in the calculation of Relevant Costs to gross up these amounts, unless: 
(i) 
such offsetting is permitted under its applicable accounting standards, with 
the exception of any income from a government incentive scheme in respect 
of certain research and development costs included within Total Costs that 
has been offset against such costs in which case the Power Unit Manufacturer 
must make an upward adjustment in the calculation of Relevant Costs to gross 
up these amounts; or

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(ii) 
finance income has been offset against Finance Costs, provided that any 
exclusion made pursuant to Article 3.1(c) is made net of finance income; or 
(iii) 
tax credits in respect of Corporate Income Tax have been offset against tax 
charges in respect of Corporate Income Tax, provided that any exclusion made 
pursuant to Article 3.1(d) is made net of tax credits in respect of Corporate 
Income Tax. 
(c) 
Research and Development costs:  
(i) 
All costs in respect of Research and Development for Power Unit Activities 
must be included in Relevant Costs in the Reporting Period in which they are 
incurred. 
(ii) 
If a Reporting Group Entity has deferred recognition of any costs in respect of 
Research and Development for Power Unit Activities to a subsequent 
Reporting Period, an adjustment must be made in the calculation of Relevant 
Costs to ensure such costs are recognised within the Reporting Period in which 
they are incurred.  
(d) 
Capitalisation of Power Units: 
If a Reporting Group Entity has capitalised any costs in respect of a Power Unit during 
the Reporting Period, an adjustment must be made in the calculation of Relevant Costs 
to ensure such costs are recognised within the Reporting Period in which they are 
incurred. 
(e) 
Capital Expenditure: 
(i) 
The amount (if any) by which the Capital Expenditure Amount for the Full Year 
Reporting Period exceeds the Capital Expenditure Limit must be included in 
the calculation of Relevant Costs. 
(ii) 
If the costs incurred as part of a Related Party Transaction, Exchange 
Transaction or F1 Team Transaction meet the definition of paragraphs (a) or 
(b) of the definition of Capital Expenditure, such costs must be included in 
Capital Expenditure at not less than Fair Value. 
(f) 
Inventories: 
(i) 
If the accounting treatment of Inventories within Total Costs of the Reporting 
Group varies from the following requirements, the Power Unit Manufacturer 
must make an adjustment in the calculation of Relevant Costs to reflect these 
requirements: 
(A) 
the cost of an item of Used Inventories must be recognised in full as 
an expense in the Full Year Reporting Period in which it was first used 
in respect of the Power Unit Manufacturer’s Power Units, provided 
that where such use occurs prior to 1 January of its N-3 Full Year 
Reporting Period and the item is re-used during the N-3 Full Year 
Reporting Period, the cost of that item of Used Inventories must be 
recognised in full as an expense in the N-3 Full Year Reporting Period;

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(B) 
the cost of an item of Unused Inventories must not be recognised in 
the Reporting Period; and 
(C) 
the cost of an item of Redundant Inventories (which has not been 
recognised in a previous Full Year Reporting Period pursuant to any 
other provision of this Article 4.1(f)(i)) must be recognised in full as an 
expense in the Reporting Period. Where practicable, the identification 
of Redundant Inventories must be carried out on an item-by-item 
basis. Otherwise, groups of similar items may be considered together.  
(ii) 
The cost of an item of Inventories must comprise:  
(A) 
all costs of purchase, determined on the same basis as that used by 
the Power Unit Manufacturer in its Audited Annual Financial 
Statements in respect of the previous Full Year Reporting Period;  
(B) 
costs of conversion (including fixed production overheads allocated on 
a basis that is appropriate to the nature of the product and method of 
production and on the basis of the entity's normal level of activity, and 
applied consistently from one Reporting Period to another); and  
(C) 
other costs incurred in bringing the item of Inventories to its present 
location and condition. 
(iii) 
 In the event that an item of Redundant Inventories: 
(A) 
has not been used; and 
(B) 
is not of a technical specification that is specific to the Power Units 
supplied to either the Nominated Team or any one Customer Team of 
the Power Unit Manufacturer; and 
(C) 
its cost has been recognised in full as an expense in the Reporting 
Period pursuant to paragraph (i)(C) of this Article, 
the aggregate cost of all such items must be allocated on an equal pro-rata 
basis across the Nominated Team and each Customer Team of the Power Unit 
Manufacturer. The Power Unit Manufacturer must then make a downward 
adjustment in the calculation of Relevant Costs for the Reporting Period equal 
to the aggregate amount allocated to the Customer Teams. 
(iv) 
In the event that an item of Redundant Inventories written off in a previous 
Reporting Period pursuant to paragraph (i)(C) of this Article is used in a 
subsequent Reporting Period, the Power Unit Manufacturer must make an 
adjustment in the calculation of Relevant Costs for that subsequent Reporting 
Period to add an amount equal to that written off in the previous Reporting 
Period.  
(g) 
Unrecorded costs or losses: 
If costs or losses incurred by a Reporting Group Entity are not recognised within its 
Total Costs, which under the applicable accounting standards should have been 
recognised within profit or loss during the Reporting Period, an adjustment must be

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made in the calculation of Relevant Costs to ensure such costs are recognised within 
Relevant Costs for the Reporting Period. 
(h) 
Foreign exchange transaction costs: 
(i) 
Subject to Article 4.1(h)(ii), if a Reporting Group Entity incurs a cost for a 
transaction in a currency other than the Power Unit Manufacturer’s 
Presentation Currency, the Power Unit Manufacturer may choose to make an 
adjustment in the calculation of Relevant Costs to reflect the difference 
between such cost retranslated into the Power Unit Manufacturer’s 
Presentation Currency using the Applicable Rate, and the value at which those 
costs were recorded on initial recognition within Total Costs of the Reporting 
Group. 
(ii) 
If a Power Unit Manufacturer chooses to make such an adjustment, it must be 
made for all costs within Total Costs of the Reporting Group that have been 
transacted in all currencies other than the Power Unit Manufacturer’s 
Presentation Currency, unless any such costs have otherwise been excluded 
from Total Costs of the Reporting Group pursuant to Article 3. 
(i) 
Eligible External Manufacturing Costs: 
If a Power Unit Manufacturer has recognised Eligible External Manufacturing Costs 
within Total Costs of the Reporting Group, it must make a downward adjustment in 
the calculation of Relevant Costs equal to 35% of any Eligible External Manufacturing 
Costs recognised, subject to a maximum amount of: 
(i) 
US Dollars 20,000,000 in respect of each of the Full Year Reporting Periods 
ending on 31 December 2023, 31 December 2024 and 31 December 2025, 
adjusted for Indexation; and 
(ii) 
US Dollars 30,000,000, adjusted for Indexation, in respect of the Full Year 
Reporting Period ending on 31 December 2026 and in respect of each 
subsequent Full Year Reporting Period. 
(j) 
Election to defer: 
(i) 
In respect of each of the Full Year Reporting Periods ending on 31 December 
2023 and 31 December 2024, a Power Unit Manufacturer may choose to make 
an upward adjustment in the calculation of Relevant Costs up to a maximum 
amount of US Dollars 15,000,000, adjusted for Indexation; and 
(ii) 
In respect of the Full Year Reporting Period ending on 31 December 2025 and 
each subsequent Full Year Reporting Period, a Power Unit Manufacturer may 
choose to make an upward adjustment in the calculation of Relevant Costs up 
to a maximum amount of US Dollars 2,000,000, adjusted for Indexation. 
(iii) 
If a Power Unit Manufacturer makes an adjustment pursuant to Article 4.1(j)(i) 
or Article 4.1(j)(ii) within its Full Year Reporting Documentation that is 
submitted to Cost Cap Administration: 
(A) 
it cannot retrospectively be reversed; and

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(B) 
the Power Unit Manufacturer must make an equal and opposite 
downward adjustment in the calculation of Relevant Costs for the 
subsequent Full Year Reporting Period. 
(k) 
New Power Unit Manufacturers: 
A Power Unit Manufacturer that, as at the end of the applicable Reporting Period 
meets the definition of a New Power Unit Manufacturer, must make a downward 
adjustment in the calculation of Relevant Costs for the following amounts: 
(i) 
in respect of both its N-3 Full Year Reporting Period and N-2 Full Year 
Reporting Period, US Dollars 10,000,000, multiplied by the Adjustment Factor 
for that New Power Unit Manufacturer and adjusted for Indexation; and 
(ii) 
in respect of its N-1 Full Year Reporting Period, US Dollars 5,000,000, 
multiplied by the Adjustment Factor for that New Power Unit Manufacturer 
and adjusted for Indexation. 
(l) 
Employee Termination Benefits: 
In the event that an individual in respect of whom the exclusion at Article 3.1(q) has 
been applied is re-engaged (either as an employee or otherwise), to undertake any 
Power Unit Activities at any time during either: 
(i) 
the same Full Year Reporting Period; or 
(ii) 
one of the subsequent two Full Year Reporting Periods,  
the amount of the Employee Termination Benefits and associated employer’s social 
security contributions so excluded must be included in Relevant Costs in the Reporting 
Period in which the individual is re-engaged.  
 
(m) 
Reassigned Employees: 
 
In the event that an individual in respect of whom the exclusion at Article 3.1(r) has 
been applied is re-engaged (either as an employee or otherwise), to undertake any 
Power Unit Activities at any time up to and including 31 December 2025, the amount 
so excluded must be included in Relevant Costs in the Reporting Period in which the 
individual is re-engaged. 
(n) 
Fuel Supplier – fuel: 
 
The cost of fuel purchased from a Fuel Supplier, together with the cost of 
transportation of that fuel to the Power Unit Manufacturer’s factory, must be included 
in Relevant Costs at US Dollars 20(1) per litre in the Reporting Period in which it is 
 
1 The amount of US Dollars 20 per litre is intended to reflect, for Power Unit Financial Regulations purposes 
only, all costs of fuel production incurred by the Fuel Supplier, including fuel research and development costs. 
For the avoidance of doubt, the value of US Dollars 20 per litre applicable for Power Unit Financial Regulations 
purposes only is not intended to represent the Fair Value of the fuel and it is understood that any transaction 
between the Fuel Supplier and the Power Unit Manufacturer for the development and supply of fuel is expected 
to occur at arm’s length, without being affected by the value set for Power Unit Financial Regulations. The 
intention is for the amount to be reassessed for the Full Year Reporting Period starting 1 January 2026.

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consumed. The Power Unit Manufacturer must make an adjustment in the calculation 
of Relevant Costs to reflect this requirement. 
(o) 
Fuel Supplier – Single-Cylinder Dynamometer: 
 
If a Power Unit Manufacturer allocates one of its declared Single-Cylinder 
Dynamometers to its Fuel Supplier in accordance with the 2026 Power Unit Sporting 
Regulations, the costs incurred by the Fuel Supplier for use of that Single-Cylinder 
Dynamometer during the Reporting Period, whether recharged to the Power Unit 
Manufacturer or not, must be included in Relevant Costs in the applicable Reporting 
Period at not less than US Dollars 4,000,000. 
(p) 
Non-Power Unit Activities: 
 
If: 
 
(i) 
during the Full Year Reporting Period ending on 31 December 2024, conditions 
that led a Power Unit Manufacturer to consider that a given activity 
undertaken in the previous Full Year Reporting Period is a Non-Power Unit 
Activity pursuant to FIA technical directive TD045 cease to exist, all costs in 
respect of that activity that were excluded in the previous Full Year Reporting 
Period pursuant to Article 3.1(e) must be included in Relevant Costs in the 
Reporting Period; and 
(ii) 
during the Full Year Reporting Period ending on 31 December 2025 and any 
subsequent Full Year Reporting Period, conditions that led a Power Unit 
Manufacturer to consider that a given activity undertaken in the previous two 
Full Year Reporting Periods is a Non-Power Unit Activity pursuant to FIA 
technical directive TD045 cease to exist, all costs in respect of that activity that 
were excluded in the previous two Full Year Reporting Periods pursuant to 
Article 3.1(e) must be included in Relevant Costs in the Reporting Period. 
4.2 
In calculating Relevant Costs, the order in which costs must be excluded pursuant to Article 
3.1, and adjustments must be made pursuant to Article 4.1, shall be determined by the Cost 
Cap Administration and set out in the Reporting Documentation. 
4.3 
For the purposes of this Article 4, where a Power Unit Manufacturer has a Presentation 
Currency other than US Dollars, amounts expressed in US Dollars shall be converted into that 
Power Unit Manufacturer’s Presentation Currency at the Initial Applicable Rate. 
5. 
REPORTING REQUIREMENTS 
Full Year Reporting Documentation 
5.1 
By the Full Year Reporting Deadline, a Power Unit Manufacturer must submit the following to 
the Cost Cap Administration (the "Full Year Reporting Documentation"): 
(a) 
the Reporting Group Documentation;  
(b) 
the Full Year Financial Reporting Documentation;  
(c) 
the Declarations; and

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(d) 
an assessment report provided by the same Independent Audit Firm that signs the 
Power Unit Manufacturer’s Audited Annual Financial Statements, in the format 
prescribed by the Cost Cap Administration from time to time via a Determination, in 
respect of the completeness and accuracy of the Full Year Reporting Documentation 
submitted by the Power Unit Manufacturer. 
Interim Reporting Documentation 
5.2 
By the Interim Reporting Deadline, a Power Unit Manufacturer must submit the following to 
the Cost Cap Administration (the "Interim Reporting Documentation"): 
(a) 
the Reporting Group Documentation;  
(b) 
the Interim Financial Reporting Documentation; and 
(c) 
the Declarations. 
Approval of a Power Unit Manufacturer’s Registration Form 
5.3 
If a Power Unit Manufacturer’s Registration Form in respect of its Inaugural Season is not 
approved by FIA until after 1 January of its N-3 Full Year Reporting Period, but by no later than 
31 December of its N-3 Full Year Reporting Period, the Cost Cap Administration will grant the 
Power Unit Manufacturer an extension to its Interim Reporting Deadline in respect of its N-3 
Interim Reporting Period. Enhanced review procedures will be performed by the Cost Cap 
Administration concerning the Power Unit Manufacturer’s compliance with these Power Unit 
Financial Regulations in respect of its N-3 Full Year Reporting Period. 
5.4 
If a Power Unit Manufacturer’s Registration Form in respect of its Inaugural Season is not 
approved by FIA until after 31 December of its N-3 Full Year Reporting Period, but by no later 
than 31 December of its N-2 Full Year Reporting Period, the Cost Cap Administration will grant 
the Power Unit Manufacturer an extension to its Full Year Reporting Deadline in respect of its 
N-3 Full Year Reporting Period, and an extension to its Interim Reporting Deadline in respect 
of its N-2 Interim Reporting Period, and the Power Unit Manufacturer is not required to 
comply with Article 5.2 in respect of its N-3 Interim Reporting Period. Enhanced review 
procedures will be performed by the Cost Cap Administration concerning the Power Unit 
Manufacturer’s compliance within these Power Unit Financial Regulations in respect of its N-
3 Full Year Reporting Period and its N-2 Full Year Reporting Period. 
5.5 
If a Power Unit Manufacturer’s Registration Form in respect of its Inaugural Season is not 
approved by FIA until after 31 December of its N-2 Full Year Reporting Period, the Cost Cap 
Administration will grant the Power Unit Manufacturer an extension to its Full Year Reporting 
Deadline in respect of both its N-3 Full Year Reporting Period and its N-2 Full Year Reporting 
Period, an extension to its Interim Reporting Deadline in respect of its N-1 Interim Reporting 
Period, and the Power Unit Manufacturer is not required to comply with Article 5.2 in respect 
of either its N-3 Interim Reporting Period or its N-2 Interim Reporting Period. Enhanced review 
procedures will be put in place by the Cost Cap Administration concerning the Power Unit 
Manufacturer’s compliance with these Power Unit Financial Regulations in respect of its N-3 
Full Year Reporting Period, its N-2 Full Year Reporting Period and its N-1 Full Year Reporting 
Period. 
6. 
COST CAP ADMINISTRATION

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6.1 
The Cost Cap Administration is responsible for administering these Power Unit Financial 
Regulations, including exercising the powers and carrying out the functions set out in this 
Article 6. 
6.2 
The Cost Cap Administration will monitor compliance with these Power Unit Financial 
Regulations, investigate instances of suspected non-compliance, and take appropriate 
enforcement action in respect of any breaches of these Power Unit Financial Regulations.  
6.3 
The Cost Cap Administration will have appropriate procedures in place to maintain the 
confidentiality of any Confidential Information provided to it by a Power Unit Manufacturer. 
6.4 
All correspondence between the Power Unit Manufacturers and the Cost Cap Administration, 
the Independent Audit Firm appointed by the Cost Cap Administration, the Cost Cap 
Adjudication Panel and/or the ICA shall be in one of the two FIA official languages (English and 
French). The Power Unit Manufacturer may be required to provide a certified translation of 
any Reporting Documentation into English at its own expense. 
6.5 
The Cost Cap Administration may issue guidance notes from time to time to assist the Power 
Unit Manufacturers in complying with these Power Unit Financial Regulations. Such guidance 
notes shall be advisory only and shall not constitute Power Unit Financial Regulations.  
Clarification of the Power Unit Financial Regulations 
6.6 
The CFO of a Power Unit Manufacturer may submit a written request to the Cost Cap 
Administration in order to clarify the operation or interpretation of these Power Unit Financial 
Regulations. The Cost Cap Administration will respond in writing to any such request and will 
make available to the CFOs of all other Power Unit Manufacturers a summary of the written 
request along with the response, omitting any Confidential Information. Such clarifications 
shall be advisory only and shall not constitute Power Unit Financial Regulations. 
Review of Reporting Documentation 
6.7 
The Cost Cap Administration will review the Reporting Documentation submitted by a Power 
Unit Manufacturer to assess whether that Power Unit Manufacturer has complied with these 
Power Unit Financial Regulations.  
6.8 
The Cost Cap Administration may engage an Independent Audit Firm to assist in reviewing a 
Power Unit Manufacturer's Reporting Documentation and to undertake a comparative 
financial analysis of the Reporting Documentation in order to help identify potential 
anomalies.  
6.9 
Each Power Unit Manufacturer shall provide such additional information, documentation or 
clarification in relation to its compliance with these Power Unit Financial Regulations as the 
Cost Cap Administration may require from time to time. 
6.10 
Once the Reporting Documentation has been reviewed, the Cost Cap Administration shall 
conclude either: 
(a) 
that a Power Unit Manufacturer has complied with these Power Unit Financial 
Regulations, in which case the Cost Cap Administration shall issue a compliance 
certificate to the applicable Power Unit Manufacturer; or 
(b) 
that a Power Unit Manufacturer has not complied with these Power Unit Financial 
Regulations, in which case the Cost Cap Administration shall either:

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(i) 
enter into an ABA pursuant to the terms of Article 6.28 below with the Power 
Unit Manufacturer concerned; or  
(ii) 
refer the case to the Cost Cap Adjudication Panel for a hearing. 
6.11 
There shall be no right of appeal against any decision by the Cost Cap Administration to issue 
a compliance certificate to a Power Unit Manufacturer. 
Regulatory function  
6.12 
The Cost Cap Administration may during a Reporting Period require a Power Unit 
Manufacturer to provide information and/or documentation for the sole purpose of enabling 
the Cost Cap Administration to perform its regulatory function as contemplated by these 
Power Unit Financial Regulations, including: 
(a) 
reviewing the controls being applied by that Power Unit Manufacturer to ensure that 
Power Unit Manufacturer’s compliance with these Power Unit Financial Regulations; 
(b) 
reviewing any Related Party Transaction, Exchange Transaction or F1 Team 
Transaction; 
(c) 
assisting in identifying any part of these Power Unit Financial Regulations which may 
require clarification by the issuance of guidance; and 
(d) 
mitigating the risk of a Power Unit Manufacturer submitting incomplete, inaccurate 
or misleading Reporting Documentation.  
6.13 
In relation to any request pursuant to Article 6.12, a Power Unit Manufacturer must, and must 
procure that the other members of the Power Unit Manufacturer’s Legal Group Structure 
shall, facilitate access to such of its premises, individuals, information and documentation as 
may be reasonably requested by the Cost Cap Administration.  
6.14 
Following any request pursuant to Article 6.12, the Cost Cap Administration may issue 
feedback to the relevant Power Unit Manufacturer in order to assist that Power Unit 
Manufacturer in complying with these Power Unit Financial Regulations. Such feedback shall 
be advisory only and shall not constitute Power Unit Financial Regulations. 
Investigations 
6.15 
The Cost Cap Administration may conduct investigations into a Power Unit Manufacturer’s 
compliance with these Power Unit Financial Regulations, assisted, if it chooses, by an 
Independent Audit Firm. The time limitation on the prosecution of infringements by the Cost 
Cap Administration is five years. This five-year time period shall run from the date of the Full 
Year Reporting Deadline for the Full Year Reporting Period in which the infringement is alleged 
to have occurred. The Cost Cap Administration shall notify the Power Unit Manufacturer in 
writing in the event that a formal investigation is to be conducted. 
6.16 
Upon completion of an investigation, any decision by the Cost Cap Administration as to 
whether or not to take further action in accordance with these Power Unit Financial 
Regulations will be at the sole discretion of the Cost Cap Administration taking into 
consideration the substance of the information disclosed and the merits of each case.  
6.17 
The Cost Cap Administration may grant partial or total immunity to any natural person who 
discloses facts that are likely to constitute an infringement referred to in Article 8 of these

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Power Unit Financial Regulations, and/or who provides evidence allowing such facts to be 
prosecuted and penalised. The degree of immunity granted to this person by the Cost Cap 
Administration depends on the following factors: 
(a) 
whether or not the Cost Cap Administration already had the information; 
(b) 
the extent of the person’s cooperation; 
(c) 
the importance of the case; 
(d) 
the importance of the offence in question and the conduct of the accused; and 
(e) 
past conduct of this person. 
6.18 
Immunity, whether partial or total, where granted, is always granted in writing. This document 
is signed by the Cost Cap Administration and by the person benefiting from the immunity. It 
specifies the type of immunity granted and sets out the sanctions that the FIA will not take 
against the person benefiting from the immunity. The immunity granted by the Cost Cap 
Administration, whether partial or total, is subject to the following conditions (the "Immunity 
Conditions"): 
 
(a) 
cooperating with the Cost Cap Administration, telling the whole truth, refraining from 
destroying, falsifying or concealing useful information or evidence, and at all times 
acting in Good Faith; and 
(b) 
providing the Cost Cap Administration with genuine, total and permanent cooperation 
throughout the entire investigation, which involves in particular: 
(i) 
giving and repeating their testimony in accordance with any request and in 
any form required by the Cost Cap Administration; and 
(ii) 
remaining at the disposal of the Cost Cap Administration to reply swiftly to 
any questions it may have. 
These Immunity Conditions are repeated in the document granting immunity. The person 
benefiting from the immunity may, depending on the circumstances, be permitted to testify 
in a manner which safeguards their anonymity. 
 
6.19 
The immunity granted by the Cost Cap Administration is irrevocable, provided that it is not 
subsequently demonstrated, that the person benefiting from the immunity has not complied 
with the Immunity Conditions. 
 
6.20 
In the event that the person benefiting from the immunity does not comply with the Immunity 
Conditions, the Cost Cap Administration may ask the Cost Cap Adjudication Panel or, in the 
event of an appeal of the Cost Cap Adjudication Panel’s decision, the ICA to revoke the 
immunity by written decision, with no possibility of appeal by the person concerned, who then 
would become liable to incur the sanctions permitted under the International Sporting Code. 
 
6.21 
The Cost Cap Administration and all persons taking part in an investigation are bound by an 
obligation of confidentiality vis-à-vis persons or organisations not concerned with the 
investigation. Nevertheless, the Cost Cap Administration may at any time make public its 
decision to conduct an investigation and the outcome thereof, provided at all times it

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maintains the confidentiality of any Confidential Information provided to it in connection with 
such investigation. 
6.22 
In relation to any investigation, a Power Unit Manufacturer must, and must procure that the 
other members of the Power Unit Manufacturer’s Legal Group Structure shall:  
(a) 
cooperate fully with any such investigation and must procure that all Personnel 
cooperate fully with the investigation, as may be required; 
(b) 
grant access to the information and records of that Power Unit Manufacturer and/or 
of any member of the Power Unit Manufacturer’s Legal Group Structure to any of the 
Cost Cap Administration, the Independent Audit Firm appointed by the Cost Cap 
Administration, the Cost Cap Adjudication Panel and/or the ICA; 
(c) 
make electronic devices of that Power Unit Manufacturer and/or of any member of 
the Power Unit Manufacturer’s Legal Group Structure available for inspection and 
download to any of the Cost Cap Administration, the Independent Audit Firm 
appointed by the Cost Cap Administration, the Cost Cap Adjudication Panel and/or the 
ICA; and  
(d) 
facilitate access to such of its premises, individuals, information, and documentation 
as may be required. 
6.23 
Each Power Unit Manufacturer must retain and preserve its accounting books and records in 
a manner that shall enable the Cost Cap Administration, the Independent Audit Firm 
appointed by the Cost Cap Administration, the Cost Cap Adjudication Panel and/or the ICA, on 
inspection pursuant to Article 6.22, to understand to its satisfaction, the content of the Full 
Year Financial Reporting Documentation submitted by that Power Unit Manufacturer in 
respect of the previous five Full Year Reporting Periods. 
Complaints procedure 
6.24 
If a Power Unit Manufacturer (a "Complainant Manufacturer") believes that another Power 
Unit Manufacturer has not complied with these Power Unit Financial Regulations, it may 
submit a report to the Cost Cap Administration as set out in Article 6.25.  
6.25 
Upon receipt of a written report from a Complainant Manufacturer, the Cost Cap 
Administration shall conduct an investigation into the reported non-compliance, subject to 
the following mandatory conditions being met: 
(a) 
the report identifies the non-complying Power Unit Manufacturer and clearly 
summarises the relevant non-compliance in each case. If a Complainant Manufacturer 
wishes to report non-compliance in respect of more than one Power Unit 
Manufacturer, the Complainant Manufacturer must submit a separate report in 
respect of each Power Unit Manufacturer to the Cost Cap Administration;  
(b) 
the report clearly specifies the relevant provision(s) of these Power Unit Financial 
Regulations which have not been complied with; 
(c) 
the report is made in Good Faith and the signatories to the relevant report have 
reasonable grounds to believe that the information reported is true, accurate and duly 
supported by evidence;

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(d) 
the report includes sufficient valid evidence in support of each reported instance of 
non-compliance; 
(e) 
the report must be submitted in the period between 1 January and 30 April (inclusive) 
immediately following the Full Year Reporting Period in which the non-compliance is 
reported to have occurred; and  
(f) 
the report shall be signed by the CEO and CFO of the Complainant Manufacturer. 
6.26 
The Cost Cap Administration may, in its sole discretion, decline to conduct an investigation if 
one or more of the mandatory conditions listed at Article 6.25 have not been met. The Cost 
Cap Administration shall inform the Complainant Manufacturer in writing of any such decision 
not to investigate. There shall be no right of appeal against any such decision not to investigate 
under this complaints procedure.  
6.27 
Upon completion of an investigation of a complaint reported pursuant to Article 6.24, the Cost 
Cap Administration shall prepare a recommendation report, which shall be submitted to the 
Cost Cap Adjudication Panel for consideration. The Cost Cap Administration shall inform the 
Complainant Manufacturer in writing of the submission of the report to the Cost Cap 
Adjudication Panel. The Cost Cap Adjudication Panel shall conduct a hearing and reach a 
decision in accordance with the provisions of Article 7.3.  
Accepted Breach Agreement 
6.28 
If the Cost Cap Administration determines that a Power Unit Manufacturer has committed a 
Procedural Breach or a Minor Overspend Breach, the Cost Cap Administration may propose 
sanctions for such breach, which should be based on the same factors, including aggravating 
and mitigating factors, that the Cost Cap Adjudication Panel would take into account under 
these Power Unit Financial Regulations for such breach pursuant to Article 8. If the Power Unit 
Manufacturer accepts the breach and the proposed sanctions the Cost Cap Administration 
may enter into an accepted breach agreement (an "ABA") with the Power Unit Manufacturer 
reflecting the acceptance. There shall be no right of appeal in respect of any decision by the 
Cost Cap Administration as to whether to enter into an ABA or not. 
6.29 
An ABA may: 
(a) 
set out certain obligations or conditions to be fulfilled or satisfied by the relevant 
Power Unit Manufacturer, either within a specified timeframe or on an ongoing basis; 
and/or 
(b) 
provide for enhanced monitoring procedures to be put in place in respect of the Power 
Unit Manufacturer; and/or 
(c) 
impose any Financial Penalty or Minor Sporting Penalties that would be available to 
the Cost Cap Adjudication Panel pursuant to Article 9 in respect of the relevant type 
of breach, save that the Cost Cap Administration shall not be entitled to impose the 
Minor Sporting Penalty specified in Articles 9.1(b)(ii),  9.1(b)(iii) and 9.1(b)(v); and/or 
(d) 
set out details of the costs to be borne by the Power Unit Manufacturer, calculated by 
reference to the reasonable costs incurred by the Cost Cap Administration in 
connection with any investigations into that Power Unit Manufacturer’s compliance 
with these Power Unit Financial Regulations and/or the preparation of an ABA.

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6.30 
The Cost Cap Administration shall oversee the implementation of, and monitor compliance 
with, the terms of any ABA. If the relevant Power Unit Manufacturer fails to comply with any 
of the terms of the ABA, the Cost Cap Administration shall refer that Power Unit Manufacturer 
to the Cost Cap Adjudication Panel.  Such non-compliance shall be treated as a Procedural 
Breach. 
6.31 
In order for the Cost Cap Administration to enter into an ABA, the relevant Power Unit 
Manufacturer must: 
(a) 
acknowledge that it has breached these Power Unit Financial Regulations; 
(b) 
accept, observe and satisfy the sanction(s) and/or enhanced monitoring procedures 
levied;  
(c) 
agree to bear the costs detailed in the ABA, as referred to in Article 6.29(d); and 
(d) 
waive its right to challenge the ABA.  
6.32 
The Cost Cap Administration will publish a summary of the terms of the ABA, detailing the 
breach, any sanctions, and any enhanced monitoring procedures, omitting any Confidential 
Information. 
7. 
COST CAP ADJUDICATION PANEL 
7.1 
The Cost Cap Adjudication Panel will comprise a panel of independent judges who will hear 
and determine cases of alleged breach of these Power Unit Financial Regulations that are 
referred to it by the Cost Cap Administration, in accordance with these Power Unit Financial 
Regulations. Decisions of the Cost Cap Adjudication Panel may be appealed to the ICA. The 
Cost Cap Adjudication Panel and, ultimately, the ICA have final authority in determining 
whether or not a Power Unit Manufacturer has complied with these Power Unit Financial 
Regulations.  
7.2 
The Cost Cap Administration will refer a case to the Cost Cap Adjudication Panel in the 
following circumstances: 
(a) 
the Cost Cap Administration determines the Power Unit Manufacturer has committed 
a Procedural Breach and/or a Minor Overspend Breach and an ABA has not been 
entered into or is not deemed appropriate; or 
(b) 
the Cost Cap Administration determines the Power Unit Manufacturer has committed 
a Non-Submission Breach or a Material Overspend Breach; or 
(c) 
a Power Unit Manufacturer has entered into an ABA but has failed to comply with the 
terms of such ABA; or 
(d) 
following an investigation by the Cost Cap Administration of a complaint reported by 
a Complainant Manufacturer pursuant to Article 6.24 of these Power Unit Financial 
Regulations. 
7.3 
Following a referral from the Cost Cap Administration the Cost Cap Adjudication Panel shall 
conduct a hearing and reach a decision.

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7.4 
The Cost Cap Adjudication Panel shall comprise a minimum of six judges and a maximum of 
twelve judges (the “Judges”) elected by the FIA General Assembly in accordance with the FIA 
Statutes from among the candidates proposed by either: 
(a) 
the FIA Sport Members entitled to vote (as per Articles 3.1 and 3.3 of the FIA Statutes); 
or 
(b) 
a group of not less than three Power Unit Manufacturers. 
7.5 
Every two years the Judges shall elect amongst themselves a President (the "President of the 
Cost Cap Adjudication Panel") and a Vice-President of the Cost Cap Adjudication Panel. 
7.6 
In case of impediment, the President of the Cost Cap Adjudication Panel shall be replaced by 
the Vice-President.  
7.7 
Each Judge’s mandate shall take effect on 1 January following their election. They shall each 
serve a four-year mandate, which shall be capable of renewal twice, subject to the transitory 
provisions specified in the FIA Statutes. 
7.8 
If a seat becomes vacant for whatever reason and should the number of serving Judges fall 
below six, the General Assembly shall elect a replacement for the remainder of the mandate. 
 
7.9 
For each case, the judging panel shall comprise at least three Judges. The members of the 
relevant judging panel shall be appointed by the President of the Cost Cap Adjudication Panel.  
7.10 
Members of the relevant judging panel must have no conflict of interest (as defined in the FIA 
Code of Ethics) with the matter in question.  In cases of doubt, the President of the Cost Cap 
Adjudication Panel (or, if he or she are themselves concerned, the Vice‐President) shall 
determine whether or not a Judge has a conflict of interest but will not be required to explain 
their decision. 
7.11 
If a member of the relevant judging panel is unable, unwilling or unfit to hear the matter 
(whether because of a conflict of interest, as described in Article 7.10, or otherwise) the 
President of the Cost Cap Adjudication Panel shall appoint a replacement member to the 
judging panel. 
Hearings before the Cost Cap Adjudication Panel 
7.12 
In respect of each hearing, one of the members of the judging panel will be appointed by the 
President of the Cost Cap Adjudication Panel to act as the President of the judging panel (the 
"President of the Hearing"). The President of the Hearing will be responsible for the conduct 
of the proceedings, verifying the regularity of the proceedings, ensuring that the rights of the 
Parties are respected (including their right to confidentiality at the hearing), keeping order 
during the hearing, and arranging for the drafting of the decision, (which shall be 
authenticated by his/her signature) as well as his/her notification to the FIA and the 
Respondent and its publication. 
7.13 
Those present at each hearing may include (together the "Parties" and each a "Party"):  
 
(a) 
the parties to the proceedings, namely the FIA (as the body responsible for 
enforcement of these Power Unit Financial Regulations) and the relevant Power Unit 
Manufacturer (as the "Respondent");  
(b) 
the representatives of the FIA and the Respondent;

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(c) 
any Witnesses, as permitted under Articles 7.15 and 7.18; and 
(d) 
any third party observer(s), as permitted under Article 7.17. 
7.14 
The Cost Cap Adjudication Panel will make public its decision to conduct the hearing, and will 
publish the final decision of the judging panel resolving the proceedings in accordance with 
Article 7.27, but otherwise the proceedings before the Cost Cap Adjudication Panel will be 
confidential and no Party may disclose any facts or other information (including Confidential 
Information) relating to the proceedings either before, during or after the proceedings. 
7.15 
The FIA and the Respondent may submit written evidence from their respective Witness(es) 
to the President of the Hearing within the prescribed timeframes. If the President of the 
Hearing considers the evidence to be relevant, he may invite such Witness(es) to attend the 
hearing in order to answer any questions from the President of the Hearing, and/or the 
judging panel, and/or the FIA and/or the Respondent. Any Witness invited to attend shall not 
be authorised to present evidence on any issue which has not been addressed in their written 
evidence, unless (exceptionally) permission is granted by the President of the Hearing. 
Requests for the hearing of Witnesses may be refused by the President of the Hearing if he 
or she, in their sole discretion, considers them to be frivolous, vexatious, excessive and/or 
unnecessary. 
7.16 
The President of the Hearing will also invite the FIA and the Respondent to set out their 
respective arguments, where appropriate without the Witnesses being present. 
7.17 
Third parties may only attend the hearing with the permission of the President of the 
Hearing, which he may grant or deny in his sole discretion. If permission is granted, the third 
party shall attend the hearing in an observer capacity only. The third party shall not be 
permitted to make submissions, to present evidence, or to question Witnesses. 
7.18 
The President of the Hearing may decide, if he considers that fairness to the FIA or the 
Respondent requires it, or that it would assist the judging panel, to hear from any other 
Witness, in addition to the FIA, the Respondent and each of their Witnesses. 
7.19 
After they have made their statements, the President of the Hearing may direct any Witness 
to remain in the courtroom and not to speak to any other Witness. 
7.20 
The President of the Hearing will then invite each of the FIA and the Respondent to make their 
closing statements. 
7.21 
The President of the Hearing may permit a Party to attend via videoconference or other means 
of communication. 
7.22 
At any point during the hearing, the judging panel may decide, after hearing the Parties but 
before making a final decision: 
(a) 
to request further information; or 
(b) 
to postpone proceedings to a later hearing, in particular in order to hear Witnesses. 
7.23 
After the Respondent has had the last word, the hearing will be declared closed and no further 
submissions or evidence shall be permitted, unless requested by the judging panel after a 
hearing has been re-opened.

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7.24 
After the close of the hearing, the President of the Hearing will announce the likely time and 
date when the decision will be pronounced.  
7.25 
The judging panel may decide to re-open the hearing at any point in its deliberation, for 
instance if it becomes aware of any new fact. In this case, each of the FIA and the Respondent 
shall be informed by a new notification for the further hearing. 
Decision 
7.26 
Following a hearing, the judging panel shall make its decision, which shall: 
(a) 
be reached unanimously or else by a majority vote with each member of the judging 
panel having one vote and in the event of a deadlock the President of the Hearing 
having a further casting vote; 
(b) 
be in writing in the English language;  
(c) 
state the reasons for its decision;  
(d) 
be notified to each of the FIA and the Respondent;  
(e) 
in the event that a Power Unit Manufacturer is found to have been in breach of these 
Power Unit Financial Regulations, contain details of: 
(i) 
any sanction (which shall be determined in accordance with Article 9); and 
(ii) 
the costs to be borne by the Power Unit Manufacturer, which shall be 
calculated by reference to the reasonable costs incurred by the Cost Cap 
Administration and the Cost Cap Adjudication Panel in connection with any 
investigation and/or adjudication. In the event that the reasonable costs 
incurred by the Cost Cap Administration are disputed, the judging panel shall 
determine them; and 
(f) 
in the event that a Power Unit Manufacturer is found to have complied with these 
Power Unit Financial Regulations, contain instructions to the Cost Cap Administration 
to issue a compliance certificate. 
7.27 
The Cost Cap Adjudication Panel will publish the decision of the judging panel and the grounds 
upon which they are based, save for any Confidential Information. 
7.28 
If, within three months of the date of notification of a decision by the Cost Cap Adjudication 
Panel, any important new evidence is discovered which was unknown during the case before 
the Cost Cap Adjudication Panel and which could call into question, or cause the Cost Cap 
Adjudication Panel to modify, its decision, the Cost Cap Adjudication Panel may, within three 
months from the date of it being notified of such important new evidence, choose to re-
examine its decision, following a process that respects both the rights of the Parties and the 
terms of these Power Unit Financial Regulations. 
Appeals 
7.29 
The ICA is the independent judicial body of that name, established under the FIA Statutes and 
the FIA Judicial and Disciplinary Rules to act as the final appeal court for international motor 
sport.

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7.30 
An appeal of a decision by the Cost Cap Adjudication Panel can be made by either the Power 
Unit Manufacturer in question, the FIA or those individuals listed in Article 9.8(b) of these 
Power Unit Financial Regulations who are the subject of a decision by the Cost Cap 
Adjudication Panel, and shall be heard by the ICA in accordance with the FIA Judicial and 
Disciplinary Rules.  
8. 
CATEGORIES OF BREACH 
Procedural Breach 
8.1 
A "Procedural Breach" arises when a Power Unit Manufacturer breaches a procedural aspect 
of these Power Unit Financial Regulations (including any Determination), except that a Non-
Submission Breach, as defined in Article 8.7, does not constitute a Procedural Breach. 
8.2 
Examples of Procedural Breaches include: 
(a) 
making a Late Submission;  
(b) 
failing to submit Interim Reporting Documentation by the Interim Reporting Deadline;  
(c) 
failing to cooperate with or respond to a written request for information, 
documentation or clarification from the Cost Cap Administration within the timeframe 
imposed by the Cost Cap Administration; 
(d) 
delaying, impeding or frustrating the exercise by the Cost Cap Administration of its 
regulatory function, including an investigation conducted under the Power Unit 
Financial Regulations, or any attempt to do so;  
(e) 
submitting Reporting Documentation that is inaccurate or misleading (e.g. by 
including inaccurate or misleading information or by omitting relevant information);  
(f) 
failing to comply with the terms of an ABA;  
(g) 
failing to comply with the requirements of Articles 1.8, 1.9 or 1.10; 
(h) 
failing to submit information or documentation required by any Determination by the 
applicable deadline included in that Determination; or 
(i) 
failing to submit a Power Unit Used Inventory Incremental List in the format 
prescribed and by the applicable deadline set by the Cost Cap Administration from 
time to time via a Determination. 
8.3 
In the event the Cost Cap Adjudication Panel determines that a Power Unit Manufacturer has 
committed a Procedural Breach, the Cost Cap Adjudication Panel shall impose a Financial 
Penalty, unless: 
(a) the Cost Cap Adjudication Panel determines that sufficient mitigating factors exist to 
justify taking no further action; or 
(b) the Cost Cap Adjudication Panel determines that a sufficient aggravating factor(s) exist, in 
which case it shall impose a Minor Sporting Penalty in addition to the Financial Penalty, or 
in lieu of the Financial Penalty. 
Late and Non-Submission of Full Year Reporting Documentation

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8.4 
In the event that a Power Unit Manufacturer does not submit all of the Full Year Reporting 
Documentation, fully completed, by the Full Year Reporting Deadline (a "Late Submission"), 
the Cost Cap Administration shall issue a late submission notice ("Late Submission Notice") to 
the Power Unit Manufacturer (the "Late Submitting Manufacturer"). 
8.5 
Each Late Submitting Manufacturer shall, within 48 hours of receipt of the Late Submission 
Notice, provide the Cost Cap Administration with a written explanation of the reasons for its 
Late Submission.  
8.6 
The Cost Cap Administration may grant the Late Submitting Manufacturer an extension to the 
Full Year Reporting Deadline provided that it is satisfied with the written explanation pursuant 
to Article 8.5 (the "Extended Reporting Deadline"). 
8.7 
In the event that a Late Submitting Manufacturer:  
(a) 
does not provide a written response to a Late Submission Notice within the specified 
time;  
(b) 
provides a written response to a Late Submission Notice within the specified time but 
such response is deemed unsatisfactory by the Cost Cap Administration; or  
(c) 
does not submit all of the Full Year Reporting Documentation, fully completed, by the 
Extended Reporting Deadline,  
the Late Submitting Manufacturer shall have committed a Non-Submission Breach and shall 
be immediately referred to the Cost Cap Adjudication Panel. 
8.8 
A Power Unit Manufacturer that submits a Subset Cost Cap Reporting Template as part of its 
Full Year Reporting Documentation when such Power Unit Manufacturer has failed to meet 
the applicable deadlines in order to use Subset Accounts stipulated by the Cost Cap 
Administration via a Determination shall have committed a Non-Submission Breach.  
8.9 
In the event the Cost Cap Adjudication Panel determines that a Power Unit Manufacturer has 
committed a Non-Submission Breach, the Cost Cap Adjudication Panel shall impose a 
Constructors’ Championship points deduction in accordance with Article 9.1(c)(i) and 
additionally may impose a Financial Penalty and/or any other Material Sporting Penalties. 
Minor Overspend Breach 
8.10 
A "Minor Overspend Breach" arises when: 
(a) 
a Power Unit Manufacturer submits its Full Year Reporting Documentation and 
Relevant Costs reported therein exceed the Power Unit Cost Cap by less than 5%; or 
(b) 
following the review of a Power Unit Manufacturer’s Full Year Reporting 
Documentation (including, where applicable, the conclusion of any investigation 
undertaken by the Cost Cap Administration and/or the Independent Audit Firm 
appointed by the Cost Cap Administration), the Power Unit Manufacturer’s Relevant 
Costs have been determined to exceed the Power Unit Cost Cap by less than 5%. 
8.11 
In the event the Cost Cap Adjudication Panel determines that a Power Unit Manufacturer has 
committed a Minor Overspend Breach, the Cost Cap Adjudication Panel may impose a 
Financial Penalty and/or any Minor Sporting Penalties.

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Material Overspend Breach 
8.12 
A "Material Overspend Breach" arises when: 
(a) 
a Power Unit Manufacturer submits its Full Year Reporting Documentation and 
Relevant Costs reported therein exceed the Power Unit Cost Cap by 5% or more; or 
(b) 
following the review of a Power Unit Manufacturer’s Full Year Reporting 
Documentation (including, where applicable, the conclusion of any investigation 
undertaken by the Cost Cap Administration and/or the Independent Audit Firm 
appointed by the Cost Cap Administration), the Power Unit Manufacturer’s Relevant 
Costs have been determined to exceed the Power Unit Cost Cap by 5% or more. 
8.13 
In the event the Cost Cap Adjudication Panel determines that a Power Unit Manufacturer has 
committed a Material Overspend Breach, the Cost Cap Adjudication Panel shall impose a 
Constructors’ Championship points deduction in accordance with Article 9.1(c)(i) and 
additionally may impose a Financial Penalty and/or any other Material Sporting Penalties. 
Aggravating or mitigating factors 
8.14 
In determining the sanctions appropriate for a particular case, the Cost Cap Adjudication Panel 
shall take into account any aggravating or mitigating factors.  
8.15 
Examples of aggravating factors include: 
(a) 
any element of bad faith, dishonesty, wilful concealment or fraud; 
(b) 
multiple breaches of these Power Unit Financial Regulations in the Reporting Period 
in question; 
(c) 
breaches of these Power Unit Financial Regulations in respect of a previous Reporting 
Period; 
(d) 
quantum of breach of the Power Unit Cost Cap; and 
(e) 
failure to co-operate with the Cost Cap Administration and/or Independent Audit Firm 
appointed by the Cost Cap Administration. 
8.16 
Examples of mitigating factors include: 
(a) 
voluntary disclosure of a breach to the Cost Cap Administration; 
(b) 
track record of compliance with these Power Unit Financial Regulations in previous 
Reporting Periods; 
(c) 
unforeseen Force Majeure Events; and 
(d) 
full and unfettered co-operation with the Cost Cap Administration and/or the 
Independent Audit Firm appointed by the Cost Cap Administration. 
9. 
SANCTIONS FOR BREACH 
Sanctions

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9.1 
The following sanctions may be imposed for breach of these Power Unit Financial Regulations 
as set out in Article 8: 
(a) 
A "Financial Penalty", meaning a fine in an amount to be determined on a case by 
case basis. 
(b) 
A "Minor Sporting Penalty", meaning one or more of the following: 
(i) 
public reprimand; 
(ii) 
deduction of Driver’s Championship and/or Constructors’ Championship 
points awarded to the Nominated Team of the relevant Power Unit 
Manufacturer for the Championship that took place within the Reporting 
Period of the breach; 
(iii) 
deduction of Drivers’ Championship and/or Constructors’ Championship 
points awarded to the Nominated Team and to all Customer Teams of the 
relevant Power Unit Manufacturer for the Championship that took place 
within the Reporting Period of the breach; 
(iv) 
limitations on the ability to conduct Power Unit Test Bench testing or other 
Testing in respect of Power Units to be homologated for supply to F1 Teams 
in respect of the Championships taking place from 2026 onwards; and/or 
(v) 
reduction of the Power Unit Cost Cap, 
provided that the penalty specified in Article 9.1(b)(v) shall only be applied with 
respect to the Full Year Reporting Period immediately following the date of the 
imposition of the sanction (and subsequent Full Year Reporting Periods, where 
applicable); and 
provided that the penalties specified in Articles 9.1(b)(ii) and 9.1(b)(iii) cannot be 
applied prior to 1 January 2026. 
(c) 
A "Material Sporting Penalty", meaning one or more of the following: 
(i) 
deduction of Drivers’ Championship and/or Constructors’ Championship 
points awarded to the Nominated Team of the relevant Power Unit 
Manufacturer for the Championship that took place within the Reporting 
Period of the breach; 
(ii) 
deduction of Drivers’ Championship and/or Constructors’ Championship 
points awarded to the Nominated Team and to all Customer Teams of the 
relevant Power Unit Manufacturer for the Championship that took place 
within the Reporting Period of the breach; 
(iii) 
limitations on the ability to conduct Power Unit Test Bench testing or other 
Testing in respect of Power Units to be homologated for supply to F1 Teams 
in respect of the Championships taking place from 2026 onwards; 
(iv) 
limitations on the ability to make future upgrades to the specification of the 
Power Unit that is currently homologated for supply to F1 Teams;

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(v) 
divesting of right for its Power Units to be homologated for supply to F1 Teams 
in respect of any Championship seasons from 2026 onwards; or 
(vi) 
reduction of the Power Unit Cost Cap, 
provided that the penalty specified in Article 9.1(c)(vi) shall only be applied with 
respect to the Full Year Reporting Period immediately following the date of the 
imposition of the sanction (and subsequent Full Year Reporting Periods, where 
applicable); and 
provided that the penalties specified in Articles 9.1(c)(i), 9.1(c)(ii) and 9.1(c)(iv) cannot 
be applied prior to 1 January 2026. 
Enhanced monitoring and suspended sanctions 
9.2 
In addition to any of the sanctions listed in Article 9.1, the Cost Cap Adjudication Panel has the 
power to impose enhanced monitoring in respect of a Power Unit Manufacturer. 
9.3 
At its sole discretion, the Cost Cap Adjudication Panel may suspend the application of any 
imposed sanction in whole or in part.  
9.4 
For the avoidance of doubt, in the event of an appeal of any decision, the application of all 
imposed sanctions shall be suspended until final decision is made by the ICA. 
Payment of a Financial Penalty 
9.5 
Payment of all fines under these Power Unit Financial Regulations shall be made within 30 
days of the date of the relevant decision. In the event an appeal is made, payment shall be 
suspended until the outcome of the appeal is determined.  
9.6 
Subject to Article 9.5, any delay in the payment of all fines under these Power Unit Financial 
Regulations automatically divests the Power Unit Manufacturer concerned of the right for its 
Power Units to be homologated for supply to F1 Teams in respect of any Championship 
seasons from 2026 onwards that commence after the relevant due date referred to in Article 
9.5, until that payment has been made.   
9.7 
Without prejudice to Article 9.6, interest shall be payable by the Power Unit Manufacturer to 
the FIA in respect of any fines not paid by the due date, accruing daily on the principal amount 
outstanding from the due date until the date of actual payment, at a rate of 2% above the US 
Federal Reserve System federal funds rate on the relevant due date. 
Individual responsibility 
9.8 
In the event that: 
(a) 
a Power Unit Manufacturer’s Full Year Reporting Documentation is incomplete, 
inaccurate or misleading in any material respect; and 
(b) 
the Cost Cap Adjudication Panel determines that that Power Unit Manufacturer’s CEO, 
CFO and/or CTO was aware, or ought reasonably to have been aware, of the same, 
the Cost Cap Adjudication Panel may impose any of the sanctions permitted under the 
International Sporting Code on the individual(s) concerned, with the exclusion of fines.

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APPENDIX 1 
 
DEFINITIONS AND INTERPRETATION 
In these Power Unit Financial Regulations, the following words and expressions have the meanings set 
out opposite them: 
"2026 Power Unit Sporting Regulations" means the FIA Formula One 2026 Power Unit Sporting 
Regulations, as amended from time to time. 
"2026 Power Unit Technical Regulations" means the FIA Formula One 2026 Power Unit Technical 
Regulations, as amended from time to time. 
"ABA" means an accepted breach agreement entered into between the Cost Cap Administration and 
the relevant Power Unit Manufacturer, as set out in Article 6.28. 
"Adjustments" means the adjustments to Total Costs of the Reporting Group set out in Article 4.  
"Adjustment Factor" means, in respect of a New Power Unit Manufacturer, the percentage amount 
relevant to the Power Unit Financial Regulations, calculated pursuant to section 5.2 of Appendix 5 of 
the 2026 Power Unit Technical Regulations. The amount shall be communicated by the FIA within the 
report to be issued pursuant to section 5.4 of Appendix 5 of the 2026 Power Unit Technical 
Regulations. If a Power Unit Manufacturer’s status as a New Power Unit Manufacturer is amended or 
revoked pursuant to section 5.3 of Appendix 5 of the 2026 Power Unit Technical Regulations during 
the Reporting Period, the amended status shall take immediate effect. 
 
"Alternative Fuel and Oil" means fuel and oil from a supplier other than the supplier that has been 
specified by the Power Unit Manufacturer to be used with the Power Units that it supplied to the 
Customer Team. 
"Applicable Rate" means:  
(a) 
the Initial Applicable Rate; or 
(b) 
the average of the daily exchange rates published by the US Federal Reserve System 
(which are available at https://www.federalreserve.gov/releases/h10/ ) as at such 
date, +/- 60 days, as the Cost Cap Administration, in its absolute discretion, decides 
and communicates to the Power Unit Manufacturers via a Determination no later than 
31 October of the Full Year Reporting Period preceding the Full Year Reporting Period 
in which the Applicable Rate is to take effect.  
"Associate" means, with respect to an entity, any other entity over which that entity holds Significant 
Influence, but not Control or Joint Control. 
"Audited Annual Financial Statements" means annual financial statements prepared in accordance 
with International Financial Reporting Standards or national accounting standards (as applicable), 
which have been audited by an Independent Audit Firm. Audited Annual Financial Statements must 
include:  
(a) 
a statement of financial position (balance sheet) at the end of the period;  
(b) 
a statement of financial performance for the period (income statement/profit and loss 
account);

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(c) 
if applicable, a statement of other comprehensive income for the period;  
(d) 
a statement of changes in equity for the period; and  
(e) 
notes, comprising a summary of significant accounting policies and other explanatory 
notes. 
"Buildings" means any building classified as such in the Audited Annual Financial Statements of each 
Reporting Group Entity and any of the following assets integrated into such building: 
(a) 
walls, floors, ceilings, doors, gates, shutters, windows and stairs; 
(b) 
mains services and systems for electricity, gas and water; 
(c) 
waste disposal systems; 
(d) 
sewerage and drainage systems; 
(e) 
shafts or other structures in which lifts are installed; and 
(f) 
fire safety systems, lighting systems and air heating / air conditioning systems. 
"Capital Expenditure" means the higher of zero and an amount equal to: 
(a) 
all costs incurred and recognised in the Audited Annual Financial Statements of each 
Reporting Group Entity in the Full Year Reporting Period or a previous Full Year 
Reporting Period as tangible assets and/or as intangible assets, which either: 
(i) 
have become available for use during the Full Year Reporting Period, except 
any such costs in respect of: 
(A) 
land, Buildings and leasehold improvements; 
(B) 
a 
tangible 
asset or an 
intangible 
asset 
for 
which 
the 
depreciation/amortisation is Directly Attributable to Marketing 
Activities, Heritage Asset Activities, Non-Power Unit Activities, Human 
Resources Activities, Legal Activities, Finance Activities, Customer 
Team Power Unit Activities or Current Generation Power Unit 
Activities; 
(C) 
Research and Development costs recognised as intangible assets; 
(D) 
goodwill arising from a business combination; 
(E) 
amounts capitalised in respect of a Power Unit; 
(F) 
Transitional Capital Expenditure; and 
(G) 
Sustainability Initiative Costs; 
or

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(ii) 
became available for use during any of the three preceding Full Year Reporting 
Periods, that were originally excluded from Capital Expenditure under 
paragraph (a)(i)(B) of this definition, but no longer satisfy this exclusion in the 
Full Year Reporting Period; 
plus 
(b) 
all costs incurred and recognised in the annual financial statements of entities within 
the Power Unit Manufacturer's Legal Group Structure but outside its Reporting Group 
in the Full Year Reporting Period or a previous Full Year Reporting Period as tangible 
assets and/or intangible assets relating to Power Unit Activities which have become 
available for use during the Full Year Reporting Period, excluding any such costs: 
(i) 
set out in paragraphs (a)(i)(A) to (G) (inclusive) of this definition; and 
(ii) 
incurred and recognised in the annual financial statements of an entity that is 
within the Reporting Group of another Power Unit Manufacturer; 
plus 
(c) 
the Fair Value of any tangible assets and/or intangible assets relating to Power Unit 
Activities that became available for use prior to the start of the relevant Full Year 
Reporting Period and are held by an entity within the Power Unit Manufacturer’s Legal 
Group Structure in the relevant Full Year Reporting Period where that entity was not 
in the Legal Group Structure of the Power Unit Manufacturer in the previous Full Year 
Reporting Period, excluding any such costs set out in paragraphs (a)(i)(A) to (G) 
(inclusive) of this definition; 
less 
(d) 
Eligible Test Bench Capital Expenditure, provided that once a Power Unit 
Manufacturer has made any deduction in a Full Year Reporting Period in respect of an 
Eligible Test Bench Asset, that Power Unit Manufacturer may not make any deductions 
in respect of the same Eligible Test Bench Asset in any subsequent Full Year Reporting 
Period; 
less, for the Full Year Reporting Period ending on 31 December 2023 only: 
(e) 
an amount equal to the aggregate of: 
(i) 
in respect of any Related Party Transaction or F1 Team Transaction pursuant 
to which a Relevant Asset is disposed of, the lower of: 
(A) 
the sale proceeds attributable to the disposal of each Relevant Asset; 
and 
(B) 
the Fair Value of each Relevant Asset as at the date of the disposal, as 
determined by an independent valuation specialist to the satisfaction 
of the Cost Cap Administration; and 
(ii) 
in respect of any other transaction pursuant to which a Relevant Asset is 
disposed of, the sale proceeds attributable to the disposal of each Relevant 
Asset,

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in each case provided that the Relevant Asset was recorded as a disposal during the 
Full Year Reporting Period within the Audited Annual Financial Statements of the 
relevant Reporting Group Entity and was not part of a sale and leaseback 
arrangement.  
"Capital Expenditure Amount" means: 
(a) 
in respect of a Power Unit Manufacturer’s N-3 Full Year Reporting Period, the Capital 
Expenditure for that Full Year Reporting Period; 
(b) 
in respect of a Power Unit Manufacturer’s N-2 Full Year Reporting Period, the 
aggregate amount of Capital Expenditure for that Full Year Reporting Period and the 
preceding Full Year Reporting Period, less the amount of the Adjustment, (if any), 
made pursuant to Article 4.1(e) in respect of the preceding Full Year Reporting Period; 
or 
(c) 
in respect of a Power Unit Manufacturer’s N-1 Full Year Reporting Period and each Full 
Year Reporting Period thereafter, the aggregate amount of Capital Expenditure for the 
relevant Full Year Reporting Period and the preceding two Full Year Reporting Periods, 
less the cumulative amount of the Adjustments, (if any), made pursuant to Article 
4.1(e) in respect of the preceding two Full Year Reporting Periods. 
"Capital Expenditure Limit" means: 
(a) 
for a Power Unit Manufacturer that, as at the end of the applicable Reporting Period, 
meets the definition of an Incumbent Power Unit Manufacturer: 
(i) 
in respect of its N-3 Full Year Reporting Period, its N-2 Full Year Reporting 
Period and its N-1 Full Year Reporting Period, US Dollars 30,000,000, adjusted 
for Indexation; and 
(ii) 
in respect of the Full Year Reporting Period within which its Inaugural Season 
commences and each subsequent Full Year Reporting Period, US Dollars 
30,000,000, adjusted for Indexation, 
and 
(b) 
for a Power Unit Manufacturer that, as at the end of the applicable Reporting Period, 
meets the definition of a New Power Unit Manufacturer: 
(i) 
in respect of its N-3 Full Year Reporting Period, its N-2 Full Year Reporting 
Period and its N-1 Full Year Reporting Period, the sum of: 
(A) 
US Dollars 30,000,000, adjusted for Indexation; plus 
(B) 
US Dollars 15,000,000, multiplied by the Adjustment Factor for that 
New Power Unit Manufacturer and adjusted for Indexation; and 
(ii) 
in respect of the Full Year Reporting Period within which its Inaugural Season 
commences and each subsequent Full Year Reporting Period, US Dollars 
30,000,000, adjusted for Indexation; 
provided that where a Power Unit Manufacturer has a Presentation Currency other than US Dollars, 
the Capital Expenditure Limit for that Power Unit Manufacturer in the relevant Full Year Reporting

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Period shall be converted from US Dollars into that Power Unit Manufacturer’s Presentation Currency 
at the Initial Applicable Rate. For illustrative purposes, the amount of the Capital Expenditure Limit in 
selected Presentation Currencies for the Full Year Reporting Periods referred to in paragraph (a)(i) of 
this definition (assuming Indexation of zero) are as follows: 
US Dollars  
(‘000) 
Pounds Sterling  
(‘000) 
Euros 
 (‘000) 
30,000 
24,145 
28,487 
 
"CEO" means the individual designated as chief executive officer for each Power Unit Manufacturer 
under the conditions of the Power Unit Manufacturer’s Registration Form to the FIA. 
"CFO" means the individual designated as chief financial officer for each Power Unit Manufacturer 
under the conditions of the Power Unit Manufacturer’s Registration Form to the FIA. 
"CTO" means the individual designated as chief technical officer for each Power Unit Manufacturer 
under the conditions of the Power Unit Manufacturer’s Registration Form to the FIA. 
"Championship" means the FIA Formula One World Championship, which includes both the 
Constructors' Championship and the Drivers' Championship. 
"Competition" has the meaning set out in the Sporting Regulations in force during the applicable 
Reporting Period and "Competitions" shall be construed accordingly. 
"Complainant Manufacturer" means a Power Unit Manufacturer that submits a report of non-
compliance with these Power Unit Financial Regulations as set out under Article 6.24. 
"Confidential Information" means all confidential information relating to a member of a Power Unit 
Manufacturer’s Legal Group Structure (whether written, oral or in any other format), including any 
information that would be regarded as confidential by a reasonable business person relating to the 
business, affairs, customers, clients, suppliers, plans, operations, processes, know-how, financial data, 
commercially sensitive information, designs, trade secrets or software of the Power Unit 
Manufacturer and/or of any member of the Power Unit Manufacturer’s Legal Group Structure.  
"Consideration" comprises:  
(a) 
in the context of an employee:  
(i) 
short-term employee benefits (including basic salaries and bonuses);  
(ii) 
post-employment benefits;  
(iii) 
other long-term employee benefits;  
(iv) 
termination benefits; and  
(v) 
any other consideration in exchange for any other service provided (whether 
written or unwritten); and 
(b) 
in the context of a person who is not an employee:  
(i) 
fees;

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(ii) 
performance or other contractual payments, including payments in 
connection with the use of image rights;  
(iii) 
termination payments; and  
(iv) 
any other consideration in exchange for any other service provided (whether 
written or unwritten). 
"Control" means the power to conduct the affairs of an entity and to direct its financial and operating 
policies which affect returns by means of shareholding, or voting power, or by constitutional 
documents (statutes) or agreement, or otherwise. "Controlling" and "Controlled" shall be construed 
accordingly. 
"Corporate Income Tax" means any domestic and/or foreign taxes which are based on taxable profits, 
including unrecoverable withholding taxes on corporate income. 
"Cost Cap Adjudication Panel" means the independent decision-making panel comprised in 
accordance with Article 7. 
"Cost Cap Administration" means the staff designated by the FIA from time to time to administer and 
monitor the operation of these Power Unit Financial Regulations. 
"Cost Cap Reporting Template" means the reporting template, in the format prescribed by the Cost 
Cap Administration from time to time via a Determination, which shall: 
(a) 
include Total Costs of the Reporting Group; 
(b) 
include, in respect of the Full Year Reporting Documentation, a reconciliation of the 
costs reported in the Cost Cap Reporting Template to the costs recorded in the 
Audited Annual Financial Statements in respect of each Reporting Group Entity; 
(c) 
calculate Relevant Costs for the applicable Reporting Period;  
(d) 
contain an appropriate level of disclosure to enable the Cost Cap Administration to 
assess compliance with these Power Unit Financial Regulations; and 
(e) 
include details of relevant Related Party Transactions, Exchange Transactions and F1 
Team Transactions.  
"Current Cars" means cars which were designed and built in order to comply with the Technical 
Regulations either in force during the applicable Reporting Period or in force during the Championship 
season immediately preceding or following the applicable Reporting Period. 
"Current Generation Power Unit Activities" means Power Unit Activities that are in respect of: 
(a) the development, manufacture, assembly, Testing, supply and servicing of Power Units 
homologated for supply to F1 Teams in respect of the Championships taking place in 2023, 
2024 and 2025; and 
 
(b)  The provision of track support services relating to the operation of Power Units by any F1 
Team in respect of the Championships taking place in 2023, 2024 and 2025. 
"Customer Team" means, in relation to a Power Unit Manufacturer, an F1 Team to which it supplies 
Power Units for the relevant Championship season other than its Nominated Team.

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"Customer Team Power Unit Activities" means Power Unit Activities that are in respect of: 
(a) the manufacture and servicing of Power Units supplied to a Customer Team; 
 
(b) the provision of the services listed in Table 2 in Appendix 3 of the 2026 Power Unit Technical 
Regulations to a Customer Team; or 
 
(c) the development, testing and validation of an Alternative Fuel and Oil for use with the Power 
Unit in F1 Cars of the Customer Team, in all cases respecting the requirements of section 4.2.2 
of Appendix 1 of the 2026 Power Unit Sporting Regulations, 
 
in each case in respect of the Championships taking place from 2026 onwards. 
"Declarations" means declarations, in the format prescribed by the Cost Cap Administration from time 
to time via a Determination: 
(a) 
signed by each of the CEO, CFO and CTO of the Power Unit Manufacturer, and, in 
respect of the Full Year Reporting Documentation only, signed by an authorised 
signatory for and on behalf of the Power Unit Manufacturer, each confirming that:  
(i) 
the Reporting Documentation with which the Declarations are supplied is 
complete, accurate, not misleading and in compliance with these Power Unit 
Financial Regulations; and  
(ii) 
the Power Unit Manufacturer has complied with the requirements of Articles 
1.8, 1.9 and 1.10; 
(b) 
in respect of the Full Year Reporting Documentation only, signed by or on behalf of 
the Power Unit Manufacturer’s Ultimate Controlling Party confirming that the 
Reporting Group Documentation with which the Declarations are supplied is 
complete, accurate, not misleading and in compliance with these Power Unit Financial 
Regulations. 
"Demonstration Event" has the meaning set out in the Sporting Regulations in force during the 
applicable Reporting Period. 
"Determination" means an official written communication issued by the Cost Cap Administration to 
all of the Power Unit Manufacturers which is expressed to be a determination and which shall be 
binding on the Power Unit Manufacturers. 
"Development" means the application of research findings or other knowledge to a plan or design for 
the production of new or substantially improved materials, devices, products, processes, systems or 
services prior to the commencement of commercial production or use. 
"Directly Attributable" means, in relation to a particular activity, if:  
(a) 
the cost would have been avoided if that particular activity was not undertaken; and  
(b) 
the cost is separately identifiable without apportionment.  
"Eligible External Manufacturing Costs" means the following types of costs that remain within Total 
Costs of the Reporting Group other than any Excluded Costs and having made the Adjustments other 
than the adjustment pursuant to Article 4.1(i):

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(a) 
costs incurred with an entity outside the Legal Group Structure of the Power Unit 
Manufacturer for the manufacture and supply of Power Unit systems, components, 
assemblies, sub-assemblies and prototypes; and 
(b) 
costs incurred with an entity outside the Legal Group Structure of the Power Unit 
Manufacturer for any research, development and design services that are wholly and 
exclusively in respect of Power Unit systems, components, assemblies, sub-assemblies 
and prototypes manufactured and supplied by that entity to that Power Unit 
Manufacturer. 
"Eligible Test Bench Asset" means a group of Eligible Test Bench Elements set out in column 1 of 
Appendix 2. 
"Eligible Test Bench Element" means an item or sub-group of items set out in column 2 of Appendix 
2. 
“Eligible Test Bench Capital Expenditure” means costs that: 
(a) 
fall within limb (a), limb (b) or limb (c) of the definition of Capital Expenditure; and 
(b) 
are in respect of assets for which a Power Unit Manufacturer has sought pre-
approval from Cost Cap Administration prior to being brought into use by or on 
behalf of that Power Unit Manufacturer, and which Cost Cap Administration has 
confirmed in writing to be Eligible Test Bench Elements in respect of that Power Unit 
Manufacturer. Such approval will only be provided in respect of a single set/unit of 
any given Eligible Test Bench Element that is required to operate the relevant Eligible 
Test Bench Asset, and will only be provided up to the quantity allowance set out in 
column 3 of Appendix 2 for any given type of Eligible Test Bench Asset; and 
(c) 
are in respect of assets that have become available for use during one of the Power 
Unit Manufacturer’s N-1 Full Year Reporting Period, N-2 Full Year Reporting Period 
or N-3 Full Year Reporting Period. 
"Employee Bonus Costs" means those amounts payable pursuant to a Formal Bonus Scheme, to the 
extent such amounts are determined solely by reference to the Power Unit Manufacturer’s 
Nominated Team’s and/or Customer Teams’ and/or those F1 Teams’ F1 Drivers’ classification in the 
Championship or by reference to those F1 Teams’ and/or those F1 Teams’ F1 Drivers’ points, podiums 
or race wins in respect of the Championship, or any combination of the foregoing, in the Reporting 
Period. 
"Employee Medical Benefits" means any medical benefits made available to all employees of all 
Reporting Group Entities, or to a specifically identified sub-category of employees of all Reporting 
Group Entities, in each case on a substantially equal basis and excluding any private medical insurance. 
"Employee Termination Benefits" means the costs of all employee benefits in connection with 
terminating the engagement of a Reporting Group Entity’s employee as a result of either:  
(a) 
termination of an employee’s engagement prior to the automatic expiry date of such 
engagement; or  
(b) 
an employee’s decision to accept an offer of benefits in exchange for the termination 
of engagement. 
"Engineering Trailer" means a branded temporary standalone structure, and any irremovable fixtures, 
fittings and equipment integrated into such structure that is brought into the paddock and constructed

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by a Power Unit Manufacturer to provide a working environment for engineering purposes during a 
Competition or Testing of Current Cars. For the avoidance of doubt this does not include any 
structures, fixtures, fittings or equipment that are constructed or installed into any permanent or 
existing paddock buildings, such as the pit garages. 
"Exchange Transaction" means a transaction between a Reporting Group Entity and a third party that 
results in one of the parties acquiring assets or services or satisfying liabilities by surrendering other 
assets or services or incurring other obligations. 
"Excluded Costs" means those costs that must be excluded from Total Costs of the Reporting Group 
pursuant to the exclusions set out in Article 3. 
"Extended Reporting Deadline" has the meaning set out in Article 8.6. 
"F1 Car Components" has the meaning set out in the Technical Regulations in force during the 
applicable Reporting Period. 
"F1 Cars" means Current Cars, Previous Cars, Historic Cars and any cars intended for future 
participation in the Championship. 
"F1 Driver" means any person:  
(a) 
engaged by an F1 Team whose primary role is as a driver engaged in the racing of F1 
Cars in the Championship for or on behalf of the F1 Team during the Reporting Period; 
and  
(b) 
who has driven in a race for the F1 Team in the Championship during the Reporting 
Period.  
"F1 Team" means a legal entity that holds an FIA Super Licence to participate in the Championship 
(being referred to in the Sporting Regulations as the "competitor", or the "constructor"). 
"F1 Team Transaction" means a transaction between a Reporting Group Entity in respect of a Power 
Unit Manufacturer and a member of the Legal Group Structure of an F1 Team. 
"Fair Value" means the price that would have been received to sell an asset or paid to transfer a 
liability in an orderly transaction between market participants at the transaction date. 
"Family Member" means in respect of an individual: 
(i) 
a spouse, domestic partner or civil partner of that individual; 
(ii) 
any other person with whom that individual lives as partner in an enduring family 
relationship; 
(iii) 
children or step-children of that individual or of any person falling within paragraph 
(i) of this definition; 
(iv) 
any children or step-children of a person falling within paragraph (ii) of this definition 
who live with that individual and have not attained the age of 18; 
(v) 
siblings of that individual;  
(vi) 
parents of that individual; and

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(vii) 
dependants of that individual or of any person falling within paragraph (i) of this 
definition; 
"FIA" means the Fédération Internationale de l’Automobile. 
"FIA Code of Ethics" means the FIA Code of Ethics adopted by the FIA General Assembly, as amended 
from time to time. 
"FIA General Assembly" means the supreme decision-making body of the FIA. 
"FIA Judicial and Disciplinary Rules" means the FIA Judicial and Disciplinary Rules adopted by the FIA 
General Assembly, as amended from time to time. 
"FIA Project" means any F1 safety-related project or initiative, or any other F1 related FIA project, in 
each case as notified to the Power Unit Manufacturers by the Cost Cap Administration via a 
Determination. 
"FIA Statutes" means the official statutes of the FIA adopted by the FIA General Assembly, as amended 
from time to time. 
"FIA Super Licence" has the meaning set out in the International Sporting Code. 
"FIA World Motor Sport Council" means the World Motor Sport Council as constituted under the FIA 
Statutes. 
"Finance Activities" are the undertaking of payroll administration, processing of payments to/from 
third parties, financial record keeping, accounting and taxation matters, and preparation of financial 
statements and internal financial analysis. 
"Finance Costs" mean:  
(a) 
interest on bank overdrafts and loans;  
(b) 
interest on convertible loan notes; 
(c) 
any related charges arising from these borrowings such as transaction fees, account 
maintenance fees or fees charged for late payment; 
(d) 
interest on and any related charges arising from any other form of borrowing of funds; 
and 
(e) 
interest on lease liabilities. 
"Financial Penalty" has the meaning set out in Article 9.1(a) and "Financial Penalties" shall be 
construed accordingly. 
"Financial Regulations" means the FIA Formula One Financial Regulations, as amended from time to 
time.  
"Flyaway Event" means a Competition or Testing of Current Cars held in any country outside the 
European Union or United Kingdom. 
"Force Majeure Event" means any circumstances beyond the reasonable control of a Power Unit 
Manufacturer affecting its compliance with these Power Unit Financial Regulations, including terrorist

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action or the threat thereof, civil commotion, disruption due to general or local elections, invasion, 
war, threat of or preparation for war, fire, explosion, storm, flood, earthquake, or any other such 
natural physical disaster, epidemic and any legislation, regulation or ruling of any government, court 
or other such competent authority. 
"Formal Bonus Scheme" means an employee bonus scheme that either:  
(a) 
has been formally communicated in writing (including, for these purposes, by email) 
to the relevant employee(s); or  
(b) 
has been formally approved by the board of directors of the Power Unit Manufacturer 
and is supported by a board resolution, 
in either case prior to the first Competition of the Championship to which the Reporting Period relates. 
"Fuel Supplier" means: 
(a) 
a Power Unit Manufacturer’s fuel supplier or prospective fuel supplier, nominated in 
accordance with the 2026 Power Unit Technical Regulations; 
(b) 
any direct or indirect Controlling or Jointly Controlling entity of the entity pursuant to 
paragraph (a) of this definition; 
(c) 
any Subsidiary, Associate or Joint Venture of the entity pursuant to paragraph (a) of 
this definition or of any entity pursuant to paragraph (b) of this definition; and 
(d) 
any party that has Significant Influence over the entity pursuant to paragraph (a) of 
this definition. 
"Full Car Dynamometer" has the meaning set out in the 2026 Power Unit Sporting Regulations. 
"Full Year Reporting Deadline" means the deadline for submission of the Full Year Reporting 
Documentation, which is 19.00 CET on 31 March, or if such day is not a business day on the next 
business day, in respect of the Full Year Reporting Period ending on 31 December in the previous 
calendar year, unless any later time or date is otherwise communicated to the Power Unit 
Manufacturers by the Cost Cap Administration via a Determination. 
"Full Year Financial Reporting Documentation" means either:  
(a) 
if the Power Unit Manufacturer submitted a Cost Cap Reporting Template within its 
Interim Financial Reporting Documentation in the Reporting Period, the following 
documents:  
(i) 
the Audited Annual Financial Statements in respect of each Reporting Group 
Entity for the Full Year Reporting Period; and 
(ii) 
a completed Cost Cap Reporting Template; or 
(b) 
if the Power Unit Manufacturer submitted a Subset Cost Cap Reporting Template 
within its Interim Financial Reporting Documentation in the Reporting Period, either: 
(i) 
the documents set out in paragraph (a) of this definition; or 
(ii) 
the following documents:

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(A) 
the Audited Annual Financial Statements for each individual Reporting 
Group Entity for the Full Year Reporting Period;  
(B) 
the Subset Accounts; and 
(C) 
a completed Subset Cost Cap Reporting Template. 
"Full Year Reporting Documentation" has the meaning set out in Article 5.1. 
"Full Year Reporting Period" means a 12-month financial reporting period commencing on 1 January 
and ending on 31 December. 
"Good Faith" means with due diligence and in a spirit of honesty, sincerity and integrity. 
"Health And Safety Costs" means: 
(a) 
costs of personal protective equipment worn by Personnel who are engaged by a 
Reporting Group Entity in the undertaking of Power Unit Activities; 
 
(b) 
Consideration provided to Personnel who are engaged by a Reporting Group Entity or 
costs of outsourced services incurred, that are Directly Attributable to guaranteeing 
the physical protection of Personnel in attendance at a Competition or on-track 
testing; 
 
(c) 
Consideration provided to Personnel who are engaged by a Reporting Group Entity or 
costs of outsourced services incurred, that are Directly Attributable to monitoring and 
ensuring compliance with applicable health and safety legislation; and 
 
(d) 
costs Directly Attributable to the provision of training or accreditation to Personnel in 
respect of compliance with applicable health and safety legislation. 
"Heritage Asset Activities" means: 
(a) 
activities for the preservation, management and maintenance of Power Units 
homologated for use in respect of Previous Cars and Historic Cars; and 
 
(b) 
track support services relating to the operation of Power Units during Testing Of 
Previous Cars and Testing Of Historic Cars. 
"Heritage Asset Personnel" means any Personnel spending 90% or more of their total working hours 
in the applicable Reporting Period undertaking Heritage Asset Activities. 
"Historic Cars" means cars which were designed and built in order to comply with the Technical 
Regulations in force within any Championship season preceding those referred to within the definition 
of Previous Cars. 
"Human Resources Activities" means the undertaking of recruitment of Personnel, Personnel 
communications, Employee Medical Benefits, and grievance, disciplinary or termination procedures 
relating to Personnel. 
"ICA" means the FIA International Court of Appeal. 
"Immunity Conditions" has the meaning set out in Article 6.18.

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"Inaugural Season" means, in relation to a Power Unit Manufacturer, the first Championship season, 
from 2026 onwards, in respect of which its Power Units are homologated for supply to F1 Teams.  
"Incumbent Power Unit Manufacturer" means a Power Unit Manufacturer that is not a New Power 
Unit Manufacturer 
 
"Independent Audit Firm" means an independent audit firm acting in compliance with the 
International Code of Ethics for Professional Accountants (including International Independence 
Standards) and who have been approved by the Cost Cap Administration. 
"Indexation" means: 
(a) 
in respect of the Full Year Reporting Period ending on 31 December 2023, the 
average annual inflation rate for the G7 countries for the year to 31 March 2023 as 
published on the International Monetary Fund website; and 
 
(b) 
in respect of the Full Year Reporting Period ending on 31 December 2024 and each 
subsequent Full Year Reporting Period, the compound rate obtained by applying the 
average annual inflation rate for the G7 countries for the year to 31 March of the 
applicable Reporting Period as published on the International Monetary Fund 
website to the Indexation rate of the preceding Full Year Reporting Period, as 
communicated by the Cost Cap Administration via a Determination. 
The average annual inflation rate for the G7 countries is published on the International Monetary Fund 
website at https://www.imf.org/external/datamapper/PCPIPCH@WEO/MAE. If such rate ceases to 
exist, the Cost Cap Administration will use an alternative rate which it deems to be reasonably 
comparable. 
"Initial Applicable Rate" means: 
(a) 
in respect of the exchange rate between US Dollars and each of Pounds Sterling and 
Euros, the following rates: 
US Dollars / Pounds Sterling 
US Dollars / Euros 
1.2425 
1.0531 
 
(b) 
in respect of all other currencies, the average of the daily exchange rates published by 
the US Federal Reserve System over the period 31 May 2022 +/- 60 days. 
"Interim Financial Reporting Documentation" means: 
(a) 
a completed Cost Cap Reporting Template; or 
(b) 
if the Power Unit Manufacturer has submitted a notice in writing to the Cost Cap 
Administration of its intention to use Subset Accounts as part of its Full Year Financial 
Reporting Documentation by the deadline communicated by the Cost Cap

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Administration via a Determination, a completed Subset Cost Cap Reporting 
Template.  
"Interim Reporting Deadline" means the deadline for submission of the Interim Reporting 
Documentation, which is 19.00 CET on 30 June, or if such day is not a business day on the next business 
day, in respect of the Interim Reporting Period ending on 30 April in the same calendar year, unless 
any later time or date is otherwise communicated to the Power Unit Manufacturers by the Cost Cap 
Administration via a Determination. 
"Interim Reporting Documentation" has the meaning set out in Article 5.2. 
"Interim Reporting Period" means a four-month financial reporting period commencing on 1 January 
and ending on 30 April in any given year. 
"International Sporting Code" means the FIA International Sporting Code, as amended from time to 
time. 
"Inventories" means only those assets which are:  
(a) 
finished goods purchased or produced, and held for use in respect of the Power Unit 
Manufacturer’s Power Units;  
(b) 
in the process of production for such use under paragraph (a) of this definition; and 
(c) 
in the form of materials or supplies to be consumed in the process of production for 
such use under paragraph (a) of this definition. 
"Joint Control" means the contractually agreed sharing of Control of an arrangement, which exists 
only when the strategic financial and operating decisions relating to the activity require the unanimous 
consent of the parties sharing Control. "Jointly Controlling" and "Jointly Controlled" shall be 
construed accordingly. 
"Joint Venture" means a joint arrangement whereby the parties that have Joint Control of the 
arrangement have rights to the net assets of the arrangement. 
"Judges" has the meaning set out in Article 7.4. 
"Key Management Personnel" means those persons having authority over and responsibility for 
planning, directing and controlling the activities of an entity, directly or indirectly, including any 
director (whether executive or otherwise) of that entity. 
"Late Submission" has the meaning set out in Article 8.4. 
"Late Submission Notice" has the meaning set out in Article 8.4. 
"Late Submitting Manufacturer" has the meaning set out in Article 8.4. 
"Legal Activities" means the provision of legal advice and guidance, legal document preparation and 
drafting, ensuring compliance with applicable laws, legal contract management, litigation 
management and representation in respect of legal matters. 
"Legal Group Structure" means:  
(a) 
the Power Unit Manufacturer;

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(b) 
any direct or indirect Controlling or Jointly Controlling entity of the Power Unit 
Manufacturer (up to and including the Ultimate Controlling Party);  
(c) 
any Subsidiary, Associate or Joint Venture of the Power Unit Manufacturer or any 
entity pursuant to paragraph (b) of this definition; and  
(d) 
any party that has Significant Influence over the Power Unit Manufacturer. 
"Marketing Activities" means:  
(a) 
the creation, development and deployment of Marketing Outputs;  
(b) 
the identification, negotiation, agreement and servicing of sponsorship agreements;  
(c) 
the negotiation and agreement with F1 Team(s) for the Power Unit Manufacturer’s 
logo or associated branding to be displayed on F1 Cars and / or plant and equipment 
assets of an F1 Team; and  
(d) 
carrying out Promotional Events, Demonstration Events or other demonstration 
events organised by the Commercial Rights Holder. 
"Marketing Outputs" means branded Power Unit Manufacturer clothing, branded Power Unit 
Manufacturer merchandise, website, customer relationship management database, public relations 
external communications, promotional events, the paddock motorhome, Engineering Trailer, Power 
Unit Manufacturer Building at a Flyaway Event and any other outputs as may be determined and 
communicated as such by the Cost Cap Administration via a Determination from time to time. 
"Material Overspend Breach" has the meaning set out in Article 8.12. 
"Material Sporting Penalty" has the meaning set out in Article 9.1(c) and "Material Sporting 
Penalties" shall be construed accordingly. 
"Minor Overspend Breach" has the meaning set out in Article 8.10. 
"Minor Sporting Penalty" has the meaning set out in Article 9.1(b) and "Minor Sporting Penalties" 
shall be construed accordingly. 
"N-1 Full Year Reporting Period" means, in relation to a Power Unit Manufacturer, the Full Year 
Reporting Period ending on 31 December immediately prior to its Inaugural Season. 
"N-2 Full Year Reporting Period" means, in relation to a Power Unit Manufacturer, the Full Year 
Reporting Period immediately preceding its N-1 Full Year Reporting Period. 
"N-3 Full Year Reporting Period" means, in relation to a Power Unit Manufacturer, the Full Year 
Reporting Period immediately preceding its N-2 Full Year Reporting Period. 
"New Power Unit Manufacturer" means a Power Unit Manufacturer that is identified as either a ‘New 
PU Manufacturer’ or a ‘partial New PU Manufacturer' pursuant to section 5 of Appendix 5 of the 2026 
Power Unit Technical Regulations. 
"Non-Submission Breach" has the meaning set out in Article 8.7 or 8.8, as applicable.  
"Non-Power Unit Activities" means activities that are not Power Unit Activities.

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"Nominated Team" means, in relation to a Power Unit Manufacturer, the F1 Team to which its 
homologated Power Units are supplied and that is stated as the ‘Nominated Competitor’ within that 
Power Unit Manufacturer’s communication to FIA pursuant to section 1.2.1 of Appendix 5 of the 2026 
Power Unit Technical Regulations for the relevant Championship season. 
"Objectives" has the meaning set out in Article 1.3. 
"Parent" means an entity that Controls one or more other entities (known as Subsidiaries). Together 
a Parent and its Subsidiaries are a "Group". 
"Parties" (and in its singular form “Party”) has the meaning set out in Article 7.13. 
"Personnel" means any individual engaged in the undertaking of Power Unit Activities by an entity in 
the Legal Group Structure of the Power Unit Manufacturer.  
"Power Train Dynamometer" has the meaning set out in the 2026 Power Unit Sporting Regulations. 
"Power Unit" has the meaning set out in either the Technical Regulations in force during the applicable 
Reporting Period or any Technical Regulations approved by the FIA World Motor Sport Council to come 
into force in a subsequent Reporting Period. The abbreviation "PU" has the same meaning. 
"Power Unit Activities" means:  
(a) 
all activities undertaken by or on behalf of the Power Unit Manufacturer or any other 
entity within the Power Unit Manufacturer’s Legal Group Structure relating to: 
(i) 
the research, development and design of Power Units; 
(ii) 
the manufacture, assembly, Testing, supply and servicing of Power Units; 
(iii) 
the provision of track support services relating to the operation of Power Units 
by any F1 Team, as set out in Appendix 3 of the Technical Regulations; and 
(iv) 
the purchase and/or manufacture of F1 Car Components used for the Sole 
Purpose Of Testing Power Units For Performance And Reliability on either a 
Power Unit Dynamometer or a Power Train Dynamometer, 
but excluding activities undertaken in order to participate in an FIA Project; 
(b) 
all activities undertaken by or on behalf of the Power Unit Manufacturer or any other 
entity within the Power Unit Manufacturer’s Legal Group Structure relating to the 
marketing of Power Units; 
(c) 
the planning, directing, management, control and/or execution of the activities 
defined as Power Unit Activities within paragraphs (a) and (b) of this definition; and  
(d) 
the management, directing, control and use of the assets used to undertake the 
activities defined as Power Unit Activities within paragraphs (a) and (b) of this 
definition. 
"Power Unit Cost Cap" has the meaning set out in Article 2.3. 
"Power Unit Financial Regulations" means these FIA Formula One Power Unit Financial Regulations, 
as amended from time to time.

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"Power Unit Manufacturer" means a legal entity that submits a Registration Form to the FIA in order 
to be eligible to homologate Power Units for supply to F1 Teams in respect of the 2026 Championship 
season onwards. 
"Power Unit Manufacturer Building" means a structure with roof and walls in the paddock made 
available by the organiser of a Flyaway Event to a Power Unit Manufacturer for the primary purpose 
of facilitating Marketing Activities. For the avoidance of doubt this does not include the pit garages. 
"Power Unit Dynamometer" has the meaning set out in the 2026 Power Unit Sporting Regulations. 
"Power Unit Test Bench" has the meaning set out in the 2026 Power Unit Sporting Regulations. 
"Power Unit Used Inventory Incremental List" means a list maintained by a Power Unit 
Manufacturer to trace and record used Power Unit components, in accordance with the format 
prescribed by the Cost Cap Administration from time to time via a Determination. 
"Presentation Currency" means, in relation to a Reporting Group Entity, the currency in which the 
Audited Annual Financial Statements of that entity are presented, and "Presentation Currencies" shall 
be construed accordingly. 
"President of the Hearing" has the meaning set out in Article 7.12. 
"President of the Cost Cap Adjudication Panel" has the meaning set out in Article 7.5. 
"Previous Cars" means cars which were designed and built in order to comply with the Technical 
Regulations in force in any of the three Championship seasons falling immediately prior to the 
Championship season preceding the applicable Reporting Period. 
"Procedural Breach" has the meaning set out in Article 8.1. 
"Promotional Event" has the meaning set out in the Sporting Regulations in force during the 
applicable Reporting Period. 
"Property Costs" means: 
(a) 
any property rent, property lease costs, business rates and property taxes; 
(b) 
property insurance costs; 
(c) 
security costs in respect of external access to the property; 
(d) 
costs of landscaping external areas within the property perimeter; and 
(e) 
costs of cleaning and waste disposal services provided in respect of the property. 
"Reassigned Employee" means an employee of a Reporting Group Entity whose engagement was 
terminated, or whose role was formally and wholly reassigned to Non-Power Unit Activities, in each 
case on or prior to 30 June 2023. 
"Redundant Inventories" means Inventories held at the end of the Reporting Period that: 
(a) 
are damaged or destroyed; 
(b) 
are obsolete; or 
(c) 
the Power Unit Manufacturer determines will not be used in the future, other than in 
respect of Previous Cars or Historic Cars.

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"Registration Form" means a Power Unit Manufacturer’s registration form submitted to the FIA as 
part of the terms and conditions for that Power Unit Manufacturer to supply duly homologated 
Power Units to F1 Teams for participation in the Championship for the 2026 to 2030 seasons 
(inclusive), in accordance with the International Sporting Code. 
"Related Party" means, with respect to a Reporting Group Entity: 
(a) 
a person who: 
(i) 
has Control or Joint Control of that Reporting Group Entity; 
(ii) 
has Significant Influence over that Reporting Group Entity; or 
(iii) 
is a member of the Key Management Personnel of that Reporting Group Entity 
or of a Parent of that Reporting Group Entity; 
(b) 
a Family Member of any person listed in paragraph (a) of this definition; 
(c) 
an entity to which any of the following paragraphs apply: 
(i) 
both it and the Reporting Group Entity are members of the same Group; 
(ii) 
it or the Reporting Group Entity is an Associate or Joint Venture of the other 
(or an Associate or Joint Venture of a member of a Group of which the other 
is a member); 
(iii) 
it and the Reporting Group Entity are Joint Ventures of the same third party; 
(iv) 
it or the Reporting Group Entity is a Joint Venture of a third party and the other 
is an Associate of the third party; 
(v) 
the entity is a post-employment defined benefit plan for the benefit of the 
employees of the Reporting Group Entity; 
(vi) 
the entity is Controlled or Jointly Controlled by a person falling within 
paragraphs (a) or (b) of this definition; 
(vii) 
a person falling within paragraph (a)(i) of this definition, or a family member 
of such a person, has Significant Influence over the entity or is a member of 
the Key Management Personnel of the entity (or of a Parent of the entity); 
and/or 
(viii) 
the entity, or any member of a Group of which it is a part, provides Key 
Management Personnel services to a Reporting Group Entity or to the Parent 
of a Reporting Group Entity. 
"Related Party Transaction" means, with respect to a Reporting Group Entity: 
(a) 
a transfer of resources, services or obligations between that Reporting Group Entity 
and a Related Party, regardless of whether a price has been charged; or 
(b) 
any transaction between that Reporting Group Entity and a third party where:

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(i) 
a commercial relationship exists between that third party and a Related Party; 
and 
(ii) 
the transaction is entered into on terms that are different to those that the 
third party would have agreed if the commercial relationship referred to in 
paragraph (b)(i) of this definition had not existed. 
"Relevant Asset" means each tangible asset held on the fixed asset register as at 31 December 2022 
within the underlying books and records of each Reporting Group Entity that: 
(a) 
is plant and equipment or IT hardware, other than Eligible Test Bench Elements; and 
(b) 
the costs in respect of which would have been treated as Capital Expenditure had that 
asset become available for use on or after 1 January 2023. 
"Relevant Costs" means the Total Costs of the Reporting Group less any Excluded Costs, and subject 
to any applicable Adjustments. 
"Reporting Deadline(s)" means the Interim Reporting Deadline and/or the Full Year Reporting 
Deadline, as the context so requires. 
"Reporting Documentation" means the Interim Reporting Documentation and/or the Full Year 
Reporting Documentation, as the context so requires. 
"Reporting Group" means the Power Unit Manufacturer and, if applicable, those entities within the 
Legal Group Structure of the Power Unit Manufacturer determined to be included in the Reporting 
Group of the Power Unit Manufacturer in accordance with Articles 2.5 to 2.10 (inclusive). Each entity 
within the Reporting Group shall be a "Reporting Group Entity". 
"Reporting Group Documentation" means documentation, in the format prescribed by the Cost Cap 
Administration from time to time via a Determination, containing:  
(a) 
details of each Reporting Group Entity for the applicable Reporting Period; and 
(b) 
confirmation that the exclusion from the Power Unit Manufacturer’s Reporting Group 
of all other entities in the Power Unit Manufacturer’s Legal Group Structure is in 
accordance with Articles 2.5 to 2.10 (inclusive).  
"Reporting Period" means the Interim Reporting Period and/or the Full Year Reporting Period, as the 
context so requires. 
"Research" means any original and planned investigation undertaken with the prospect of gaining new 
scientific or technical knowledge and understanding. 
"Respondent" has the meaning set out in Article 7.13(a). 
"Single-Cylinder Dynamometer" has the meaning set out in the 2026 Power Unit Sporting Regulations. 
"Significant Influence" means the power to participate in the financial and operating policy decisions 
of the entity, but not in Control or Joint Control of that entity. Significant Influence may be gained by 
means of shareholding, or voting power, or by constitutional documents (statutes), or by agreement, 
or otherwise.

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"Sole Purpose Of Testing Power Units For Performance And Reliability" has the meaning set out in 
the 2026 Power Unit Sporting Regulations. 
"Sporting Regulations" means the FIA Formula One Sporting Regulations, as amended from time to 
time.  
"Subset Accounts" means, annual accounts for the Full Year Reporting Period for a clearly identifiable 
component of the Power Unit Manufacturer, the format of which shall be prescribed by the Cost Cap 
Administration via a Determination and which shall: 
(a) 
include Total Costs of the Power Unit Manufacturer less any costs Directly Attributable 
to Non-Power Unit Activities;  
(b) 
be prepared by reference to the same financial reporting framework and under the 
same accounting policies used by the Power Unit Manufacturer in its Audited Annual 
Financial Statements; 
(c) 
comprise:  
(i) 
an income statement with line items down to profit or loss before Finance 
Costs and Corporate Income Tax;  
(ii) 
balance sheet line items for tangible assets, intangible assets, inventories and 
research and development costs; and  
(iii) 
explanatory notes,  
which have been audited by the same Independent Audit Firm that signs the Power 
Unit Manufacturer’s Audited Annual Financial Statements; and 
(d) 
be derived from best practice accounting separation and regulatory financial reporting 
requirements.  
"Subset Cost Cap Reporting Template" means the reporting template, in the format prescribed by the 
Cost Cap Administration from time to time via a Determination, which shall: 
(a) 
include:  
(i) 
Total Costs of the Power Unit Manufacturer less any costs Directly 
Attributable to Non-Power Unit Activities; and  
(ii) 
if the Reporting Group includes entities other than the Power Unit 
Manufacturer, the Total Costs of each Reporting Group Entity (other than the 
Power Unit Manufacturer); 
(b) 
include, in respect of the Full Year Reporting Documentation, a reconciliation of the 
costs reported in the Subset Cost Cap Reporting Template to the costs recorded in:  
(i) 
the Subset Accounts; and  
(ii) 
if the Reporting Group includes entities other than the Power Unit 
Manufacturer, the Audited Annual Financial Statements in respect of each 
Reporting Group Entity (other than the Power Unit Manufacturer);

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(c) 
include, in respect of the Full Year Reporting Documentation, a reconciliation of the 
costs recorded in the Subset Accounts to the costs recorded in the Audited Annual 
Financial Statements of the Power Unit Manufacturer; 
(d) 
calculate Relevant Costs for the applicable Reporting Period;  
(e) 
contain an appropriate level of disclosure to enable the Cost Cap Administration to 
assess compliance with these Power Unit Financial Regulations; 
(f) 
include details of relevant Related Party Transactions, Exchange Transactions and F1 
Team Transactions; and 
(g) 
prescribe reporting obligations no less onerous than those to which that Power Unit 
Manufacturer would have been subject had it reported using the Cost Cap Reporting 
Template.  
"Subsidiary" means an entity that is Controlled by another entity (known as the Parent). 
"Sustainability Initiative Costs" means: 
(a) 
Consideration provided to Personnel engaged by a Reporting Group Entity or costs of 
outsourced services incurred, that are Directly Attributable to defining and 
identifying ESG sustainability objectives and the strategy envisaged to achieve these 
objectives, and the monitoring, collation and production of reports to measure 
progress against carbon foot-print and emissions targets and overall ESG 
sustainability objectives; 
 
(b) 
costs incurred with an external specialist to provide environmental sustainability 
accreditations and/or certifications; 
 
(c) 
feasibility study costs and costs to procure and install solar panels, wind turbines 
and/or geothermal heat pumps and any related monitoring equipment; 
 
(d) 
costs to procure up to 50 fully electric or hydrogen powered company cars and to 
procure and install associated charging points at the Power Unit Manufacturer’s 
premises; 
 
(e) 
costs of IT software and IT licenses to monitor, collate, measure and report data in 
respect of carbon foot-print and emissions targets and overall environmental 
sustainability objectives; 
 
(f) 
Donations to charities engaged in the promotion of environmental sustainability 
projects, costs to purchase green certificates, and costs of planting trees for the 
purpose of offsetting the Power Unit Manufacturer’s carbon emissions; 
 
(g) 
costs of bio-fuel purchased for use in the Power Unit Manufacturer’s company cars, 
race transporters and generators used during Competitions and Testing of Current 
Cars; 
 
(h) 
costs of sustainable aviation fuel purchased to offset carbon emissions from air 
travel by Personnel and air-freight to Competitions or Testing of Current Cars; and 
 
(i) 
costs of optional logistics surcharges levied by the Commercial Rights Holder for the 
purpose of developing or utilising sustainable logistics solutions and separately 
identified as such within the logistics recharges made by the Commercial Rights 
Holder to the Power Unit Manufacturer.

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"Technical Regulations" means the FIA Formula One Technical Regulations, as amended from time to 
time. 
"Testing" means all off-track testing, other than on a Full Car Dynamometer of either a Power Unit or 
Power Unit systems, components, assemblies, sub-assemblies or prototypes.  
"Testing Of Current Cars" has the meaning set out in the Sporting Regulations in force during the 
applicable Reporting Period.  
"Testing Of Historic Cars" has the meaning set out in the Sporting Regulations in force during the 
applicable Reporting Period.  
"Testing Of Previous Cars" has the meaning set out in the Sporting Regulations in force during the 
applicable Reporting Period.  
"Total Costs" means all costs and losses recognised within profit or loss of the underlying books and 
records. 
"Total Costs of the Reporting Group" means the aggregate of Total Costs of each Reporting Group 
Entity, having adjusted (to the extent applicable) for any amounts recharged from one Reporting 
Group Entity to another Reporting Group Entity. 
"Total Employee Remuneration" means the aggregate annual basic salaries and bonuses of all 
employees within Total Costs of the Reporting Group, excluding any such amounts falling within 
Articles 3.1(a), 3.1(b), 3.1(e), 3.1(f), 3.1(h), 3.1(n), 3.1(o), 3.1(p) and 3.2. 
"Total Fixed Employee Remuneration" means the aggregate annual basic salaries of all employees 
within Total Costs of the Reporting Group, excluding any such amounts falling within Articles 3.1(a), 
3.1(b), 3.1(e), 3.1(f), 3.1(n), 3.1(o), 3.1(p) and 3.2. 
"Transitional Capital Expenditure" means all costs incurred and recognised in the Audited Annual 
Financial Statements of each Reporting Group Entity up to and including 31 December of the Power 
Unit Manufacturer’s N-2 Full Year Reporting Period as tangible assets and/or as intangible assets: 
(a) 
that are Transitional Capital Expenditure Qualifying Assets; 
 
(b) 
that became available for use by 30 June of the Power Unit Manufacturer’s N-2 Full Year 
Reporting Period; and 
 
(c) 
in respect of which the Power Unit Manufacturer can provide evidence that the cost and 
technical specification of the individually identified assets was formally approved by the 
board of directors of the applicable Reporting Group Entity prior to 30 September of the 
year immediately preceding its N-3 Full Year Reporting Period, to the satisfaction of the 
Cost Cap Administration. 
"Transitional Capital Expenditure Qualifying Assets" means those assets that meet the description 
set out in columns 1 to 2 of Appendix 3, up to a maximum quantity in respect of each individual asset 
as set out in column 3 of Appendix 3. If there is any doubt as to whether a tangible asset and/or an 
intangible asset is a Transitional Capital Expenditure Qualifying Asset, the Power Unit Manufacturer 
shall request a clarification from the Cost Cap Administration pursuant to Article 6.6. 
"Ultimate Controlling Party" means, in respect of a Power Unit Manufacturer, the entity or individual 
which has ultimate Control, directly or indirectly, of that Power Unit Manufacturer.

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"Used Inventories" means Inventories held at the end of the Reporting Period for future use in 
respect of the Power Unit Manufacturer’s Power Units, that have been used in respect of the Power 
Unit Manufacturer’s Power Units in the Reporting Period. 
"Unused Inventories" means Inventories held at the end of the Reporting Period for future use in 
respect of the Power Unit Manufacturer’s Power Units, excluding Used Inventories and Redundant 
Inventories. 
"Witness" means a fact witness and/or an expert witness and "Witnesses" shall be construed 
accordingly.

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APPENDIX 2 
 
ELIGIBLE TEST BENCHES  
(column 1) 
(column 2) 
(column 3) 
Eligible Test 
Bench Asset  
Eligible Test Bench Element 
quantity 
allowance 
(1) Turbo 
(1a) Gas stand: turbo charger test stand, including ‘machine 
bed’ / baseplate, and/or test bench shipping container if 
containerised solution selected. 
 
(1b) Dyno support structure to junction with test subject 
(turbocharger) support structure. 
 
(1c) Compressor air inlet, compressor outlet and 
measurement section, excluding instrumentation. 
 
(1d) Dyno industrial plant heat exchanger / chillers or cooling 
towers and associated fan systems. 
 
(1e) Dyno electrical system including power supply, inverters, 
controllers, cabinets, transformers, UPS’s, cabling up to 
junction with mains power supply. 
 
(1f) Dedicated dyno only compressors or compressed air 
supply. 
 
(1g) Hot gas generating unit and spent gas outlet. 
 
(1h) Dyno oil system up to connection with test subject. 
 
(1i) Dyno hydraulic system up to connection with test subject. 
 
(1j) Dyno extraction system up to connection with test 
subject. 
 
(1k) Dyno air inlet system for compressor air up to connection 
with compressor air inlet duct including any dyno ICE charge 
air cooling system representation. 
 
(1l) Dyno cell sound insulation including covering adjacent to 
internal surface of dyno cell. 
 
(1m) Dyno cell viewing transparencies and containment 
protection. Dyno cell viewing camera and recorder. 
 
(1n) Dyno safety and fire suppression systems. 
 
(1o) Dyno cell ventilation and climatic control system. 
 
1

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(1p) Dyno control system sensors, software and dyno data 
acquisition system software excluding any post processing or 
visualisation tools. 
 
(1q) FIA monitoring systems. 
 
(2) Single-
Cylinder 
Dynamometer 
(2a) Dyno 'machine bed' / baseplate, and/or dyno shipping 
container if containerised solution selected. 
 
(2b) Dyno support structure to junction with test subject (1 
Cylinder engine) support structure. 
 
(2c) Dyno absorbers (up to two synchronous / asynchronous 
electromechanical absorbers / MGU-K’s) and 'load cell' torque 
measurement apparatus. 
 
(2d) Power take-off coupling. 
 
(2e) Dyno power take-off splitter gearbox and support 
structure. 
 
(2f) Dyno water system, associated pumps, valves and 
pipework to junction with unit under test and dyno industrial 
plant heat exchangers / chillers or cooling towers. 
 
(2g) Dyno industrial plant heat exchanger / chillers or cooling 
towers and associated fan systems. 
 
(2h) Dyno electrical system including power supply, inverters, 
controllers, cabinets, transformers, UPS’s and cabling up to 
junction with mains power supply. 
 
(2i) Dedicated dyno only compressors or compressed air 
supply. 
 
(2j) Dyno fuel system including storage tank up to connection 
with ICE fuel system. 
 
(2k) Dyno oil system up to connection with ICE. 
 
(2l) Dyno hydraulic system up to connection with ICE. 
 
(2m) Dyno extraction system up to connection with ICE 
exhaust. 
 
(2n) Dyno exhaust gas and emissions analyser, dyno cylinder 
pressure high and low pressure indicating system, including 
sensors, encoder and amplifiers. 
 
(2o) Dyno dynamically variable air inlet system for 
combustion air up to connection with ICE air inlet duct 
including dyno charge air temperature control system. 
 
3

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(2p) Dyno cell sound insulation including covering adjacent to 
internal surface of dyno cell. 
 
(2q) Dyno cell viewing transparencies and containment 
protection. Dyno cell viewing camera and recorder. 
 
(2r) Dyno safety and fire suppression systems. 
 
(2s) Dyno cell ventilation and climatic control system. 
 
(2t) Dyno control system sensors, software and dyno high 
speed data acquisition system and software excluding any 
post processing or visualisation tools and excluding 
instrumentation. 
 
(2u) FIA monitoring systems. 
 
(3) Power Unit 
Dynamometer 
(3a) to (3u) in each case, the same item or sub-group of items 
described above within (2a) to (2u) respectively. 
 
(3v) Oil consumption, oil aeration and oil viscosity 
measurement systems. Motion amplification camera system 
for non-contact vibration measurement. 
 
(3w) Dyno inverter system, MGU-K emulator, ERS battery 
emulator, cabling and ERS battery climatic chamber or 
housing. 
 
3 
(4) Power Train 
Dynamometer 
(4a) to (4w) in each case, the same item or sub-group of items 
described above within (3a) to (3w) respectively. 
 
(4x) Blower systems for providing air to car mounted 
primary heat exchangers (up to 360km/hr, 25,500m3/hr). 
 
(4y) Additional support structure required for gearbox and 
drivetrain up to junction with gearbox and drivetrain 
adaptors. 
 
(4z) Exhaust tailpipe exit reduced ambient pressure 
emulation acting on local pressure around exit only. 
1 
(5) Full Car 
Dynamometer 
(5a) to (5z) in each case, the same item or sub-group of items 
described above within (4a) to (4z) respectively. 
 
(5aa) Support structure for F1 car chassis and front 
suspension up to junction with mounting adaptors. 
 
(5ab) Dyno absorbers (up to two further synchronous / 
asynchronous electromechanical absorbers / MGU-K’s, in 
addition to the two already included within (5c)). 
 
1 
(6) ERS Test 
Bench 
(6a) Dyno ‘machine bed’ / baseplate, and/or dyno shipping 
container if containerised solution selected. 
 
2

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(6b) Dyno support structure to junction with test subject 
(MGU-K / CU-K / ES) support structure. 
 
(6c) Dyno absorber (synchronous / asynchronous 
electromechanical absorber / MGU-K) and ‘load cell’ torque 
measurement apparatus. 
 
(6d) Dyno cooling system, pumps, valves, pipework to 
junction unit under test. 
 
(6e) Dyno industrial plant heat exchangers and fan systems. 
 
(6f) Dyno electrical system including power supply, inverters, 
controllers, cabinets, transformers, UPSs, cabling up to 
junction with mains power supply, primary current and 
voltage sensors. 
 
(6g) Dyno DC-DC converter test system. 
 
(6h) Dedicated dyno only compressors or compressed air 
supply. 
 
(6i) Dyno control system sensors, software and dyno data 
acquisition system software excluding any post processing or 
visualisation tools and excluding instrumentation. 
 
(6j) Dyno cell viewing transparencies and containment 
protection. 
 
(6k) Dyno safety and fire suppression systems. 
 
(6l) Dyno cell ventilation and climatic control system. 
 
(6m) FIA monitoring systems. 
 
(6n) Power take-off coupling and dyno power take-off 
gearboxes. 
 
(6o) ERS battery emulator, MGU-K emulator and dyno 
inverter system for MGU-K control. 
 
(6p) ERS battery climatic chamber and control system. 
 
(7) ES Test Bench 
(7a), (7b), (7d) to (7m), (7o) and (7p) in each case, the same 
item or sub-group of items described above within (6a) to 
(6p) respectively. 
1

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APPENDIX 3 
 
TRANSITIONAL CAPITAL EXPENDITURE QUALIFYING ASSETS 
 
(column 1) 
(column 2) 
(column 3) 
No. 
Equipment 
Description 
Qty 
Turbocharger test rig equipment 
1 
Turbo assembly 
balancing rig 
A machine to balance the turbocharger in two 
orthogonal planes during the assembly process 
1 
2 
Turbocharger high 
speed balancing rig 
A facility to rotate turbo mainshaft and measure 
dynamic out of balance.   
1 
Component test rig equipment 
3 
Hydraulics test bench 
A minimal rig for signing off PU included 
hydraulic assemblies (e.g. throttles, wastegate) 
post build including test piece mounting, 
hydraulic power supply, servo valve control, 
actuator position measurement and mechanical 
test load 
1 
4 
Component pressure 
test and impulse 
fatigue rigs 
Rigs for proving out all pressurised PU included 
components (e.g. fuel rails) 
6 
5 
ICE articulation / 
gimbal rig 
A rig which articulates the ICE or test subject of 
similar mass and dimensions to assess oil 
system performance under acceleration. 
1 
6 
Oil level sensor rig 
A rig to enable static calibration of the oil level 
sensor at a range of oil levels and oil 
temperatures 
1 
7 
Oil pump test rigs 
Rigs to test individually or in combination oil 
pressure pumps, oil scavenge pumps or oil 
deaerators 
4 
8 
Centre of gravity 
gimbal rig 
An instrumented gimbal rig to measure the 
centre of gravity of the ICE in orthogonal axes 
1 
9 
Science grade infra-
red camera 
A single camera head for thermal imaging of PU 
and PU components 
6 
10 
High speed camera 
A high frame rate single camera head system 
for design information and reliability 
investigations 
1 
11 
Gear test rig 
A mechanical gear mesh test rig for strength, 
fatigue and friction testing of PU gears including 
associated measurement and control system 
1 
12 
ICE cylinder block flow 
rig 
A dedicated rig to measure PU cylinder block 
internal liquid flows including associated 
measurement and control system  
1 
13 
Valve train test rig 
A motoring rig for valve train system testing 
including high-speed vibrometer 
1 
14 
Cylinder head flow 
bench 
Flow bench for cylinder head testing including 
particle image velocimetry and laser induced 
fluorescence measurement 
1

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(column 1) 
(column 2) 
(column 3) 
No. 
Equipment 
Description 
Qty 
15 
Water pump rig 
A water pump pass-off, durability and 
performance assessment rig 
1 
16 
Fuel injector test 
bench 
A dedicated bench to test fuel system injectors 
for reliability, characterisation and spray 
pattern 
1 
Quality control equipment 
17 
Coordinate measuring 
machines 
Coordinate measurement machines for 
component inspection with a range of 
measurement of up to 2200mm in each of the 
principal axes 
12 
18 
ICE build coordinate 
measuring machine 
A large 3 Axis, robotic arm or optical coordinate 
measurement machine for inspection of the PU 
during the build process 
1 
19 
CT scanner 
A 3D Xray machine with the capability of 
checking & measuring internal parts of PU 
components  
3 
20 
Endoscope camera 
Endoscope for PU internal inspection 
8 
ERS facility equipment 
21 
HIL rig 
A PU included component electrical modular 
test rig, suitable for a single set of PU electrical 
hardware including associated software 
2 
22 
Vibration test rig  
A rig to apply F1 Car vibration levels to electrical 
assemblies with a payload up to 200Kg 
(including a climatic chamber, control unit, 
transformer, vibration amplifier and vibration 
source) 
1 
23 
Cell conditioning and 
quality rig (self-
discharge rig) 
A rig and software to condition the ERS cells 
prior to build into modules and to quantify level 
of self-discharge 
1 
24 
ERS cell testing rig  
A rig and software to assess performance of ERS 
cells (outside of the ES)- including climatic 
chamber and extraction system. 
2 
25 
ERS coolant pump rig 
An ERS coolant pump pass-off, durability and 
performance assessment test rig 
1 
26 
ERS environmental 
chamber 
A test chamber for exposing the ERS to thermal 
or humidity shocks 
1 
27 
ES storage 
ES storage facility where such facility is not a 
Building. Including climate control, fire 
protection and monitoring system  
4 
28 
ES transport case 
Transport case for ES type assemblies of 
compatible size 
40 
29 
Electrical pulse tester 
/ generator 
Tester to allow detail and accurate 
characterisation and measurement of ERS items 
from component to assembly 
2

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(column 1) 
(column 2) 
(column 3) 
No. 
Equipment 
Description 
Qty 
30 
Inductive tester 
Tester to allow detail and accurate 
characterisation and measurement of ERS items 
from component to assembly 
2 
31 
Motor test meters 
HV test meters to measure MGU-K winding 
condition and quality 
7 
32 
3 axis or CNC 
resistance welding 
machine 
Welding machine suitable for the production of 
ES cell blocks 
2 
33 
Cell tab cutting and 
forming equipment 
Workstation and required tooling for cell tab 
cutting or forming 
4 
34 
ES discharge 
equipment 
ES discharge equipment to reduce cell SOC to 
required levels for storage or transportation 
1 
35 
Low speed spin rig 
A low power and speed MGU-K test bench to 
allow motor calibration, sensor specification 
confirmation (rotor position / speed) and pre-
production invertor functional testing 
1 
36 
Nitrogen generator 
and distribution 
system  
A nitrogen generator and distribution system as 
required for manufacturing processes and 
safety features 
2 
37 
Magnetic rotor flux 
scanner 
Machine to measure and characterise magnetic 
rotor performance and quality 
1 
38 
Rotational speed 
sensor calibration rig 
Rig to test and calibrate rpm sensors 
1 
Materials laboratory equipment 
39 
Tensile test rig 
A material sample tensile and compressive load 
testing machine up to 300kN 
1 
40 
Rotating bend fatigue 
test machine 
A fatigue sample test machine producing 
fatigue cycle through rotation with a bending 
load applied on samples up to 200mm in length 
1 
41 
Axial fatigue test 
machine 
An axial fatigue sample test machine including 
an environmental chamber 
1 
42 
Heat treatment oven 
Small oven of up to 0.5m3 capacity with vacuum 
to allow heat treatment of material samples 
1 
43 
Scanning electron 
microscope (SEM) 
A general purpose SEM for material inspection 
1 
44 
Coating thickness 
“Calo test” machine 
A machine for Measurement of thin film and 
coating thicknesses using “ball craterer” and 
microscope 
1 
45 
Coating adhesion and 
hardness test rig 
A scratch test machine for coating adhesion and 
hardness testing 
1 
46 
Oil gas 
chromatography (GC) 
unit 
An Oil GC measurement machine 
3 
47 
Oil wear analysis 
machine 
Oil spectroscopy analyser for wear metal 
measurement. 
2

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(column 1) 
(column 2) 
(column 3) 
No. 
Equipment 
Description 
Qty 
48 
Eddy current flaw 
detector 
An eddy current inspection device for material 
or component inspection 
1 
49 
Ultrasonic flaw 
detector 
An ultrasonic scanning device for crack 
detection in material samples 
2 
Manufacturing equipment 
50 
Dynamic balancing 
machine  
Machine for measuring dynamic balance of 
rotating PU components of up to 50Kg rotating 
mass 
2 
51 
Up to 5 axis milling 
machine  
A milling machine (up to 5 axis) used for the 
manufacture of components with a range of 
movement of the tool in each of the X,Y and Z 
axes of less than 1300mm based on a right hand 
co-ordinate system 
25 
52 
2 axis lathe  
A 2 axis turret lathe with live turret tooling and 
a tailstock for producing cylindrical type 
components 
3 
53 
3 axis lathe  
A 3 axis turret lathe with live turret tooling and 
a second turning spindle for producing 
cylindrical type components 
2 
54 
7 axis turn-mill  
A 7 axis turn-mill machine for producing 
complex turn-milled components 2 turning 
spindles (C1 & C2 Axis, with moving C2 spindle 
(W Axis) 
4 axis milling/turning head (X1, Y1, Z1 & B) 
2 axis lower turning turret (X2, Z2) 
Additional travelling steady rest and/or 
additional "in machine travelling robot" (IMTR) 
for part loading/unloading 
5 
55 
Wire electro-discharge 
machine (wiring)  
A multi axis WEDM Machine for creating small 
and intricate details not possible through 
conventional machining with a work envelope 
up to 500mm x 500mm x 400mm in each of 
three orthogonal axes 
1 
56 
Electro-discharge 
machine (drilling)  
An EDM Machine for drilling small holes in 
positions and materials that are not possible 
through conventional machining 
2 
57 
Honing machine  
A 3 axis honing machine for producing accurate 
internal diameters on cylindrical components 
excluding honing heads 
1 
58 
Crankshaft grinding 
machine  
A multi axis crankshaft grinding machine for 
producing PU crankshaft mains and pins 
2 
59 
Camshaft grinding 
machine  
A multi axis camshaft grinding machine for 
producing PU camshaft journals and lobe 
profiles 
1 
60 
TIG welding machine 
A 3 phase powered mobile manual tungsten-
inert gas welding set 
1

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(column 1) 
(column 2) 
(column 3) 
No. 
Equipment 
Description 
Qty 
61 
Laser welding machine  Laser welding machine and associated 
equipment 
1 
62 
Hot and cold wash 
plant  
Any aqueous or detergent hot, cold and ice 
wash and parts cleaner machines for cleaning 
various types of PU components and tooling 
15 
63 
Universal cylindrical 
grinding machine 
A universal external and internal cylindrical 
grinding machine 
3 
64 
Gear profile grinding 
machine 
A machine for grinding of gear profiles for PU 
gears 
1 
65 
Jig grinder 
A general purpose jig grinding machine 
1 
66 
Crankshaft polishing 
machine 
A dedicated crankshaft polishing machine for 
producing super fine surface finishes on 
crankshaft journals 
1 
67 
Manual surface 
grinding machine 
A manually operated surface grinding machine 
for grinding engine components 
1 
68 
Piston skirt turning 
machine 
A 2 axis turret lathe with dedicated oval turning 
capabilities for producing piston skirt profiles 
2 
69 
Piston pin bore 
machine 
A 2 axis boring machine with dedicated oval 
milling capabilities for producing piston pin 
bore profiles 
1 
70 
High velocity oxygen 
fuelled (HVOF) coating 
system 
A HVOF coating system including gun, controller 
and powder feeder 
1 
71 
Nitride furnace 
A nitrogen fed furnace suitable for component 
coating 
1 
72 
Coating spray booth 
A 1m3 internal volume spray booth suitable for 
coating application 
2 
73 
Burnishing machine 
A vibratory trough for polishing external 
features of components 
1 
74 
Guillotine 
A metal cutting guillotine suitable for material 
up to 10mm thickness x 2.5m cut 
1 
75 
Sheet folder 
A metal sheet folding machine suitable for up to 
2.5m length fold 
1 
76 
CNC bender 
A CNC controlled pipe bender for up to 150mm 
outer diameter x 500mm pipe length 
1 
77 
Crankshaft & camshaft 
inspection machine 
A dedicated high accuracy inspection tool with 
fixtures and multiple contact sensors for 
measuring of crankshafts and camshafts 
1

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(column 1) 
(column 2) 
(column 3) 
No. 
Equipment 
Description 
Qty 
78 
Optical inspection 
A bench top optical gauging tool for inspecting 
external features of components with up to 
500mm x 400mm measuring range 
4 
79 
Surface roughness 
measurement and 
form tracing 
A high accuracy surface roughness tester and 
form tracing machine for inspection of 
components  
2 
80 
High powered optical 
microscope 
High powered bench top microscope for visually 
inspecting PU components 
8 
81 
MGU-K rotor bonding 
machine 
Automated MGU-K magnet bonding machine 
for designs compatible with Formula One 
1 
82 
MGU-K rotor grinding 
machine 
A machine for accurate grinding of the external 
diameter of MGU-K rotors 
1 
83 
Sleeve press 
Indicated press for MGU-K rotor banding for 
designs compatible with Formula One 
1 
84 
Sleeve winding 
machine 
A precision winding machine for composite 
sleeves on mandrel for press fit or directly onto 
the MGU-K rotor 
1 
85 
MGU-K rotor 
magnetising 
equipment 
A fixture and power supply for magnetising the 
MGU-K rotor 
1 
86 
MGU-K stator 
production  
Machinery, tool or fixture for production of 
MGU-K stator including winding, stripping or 
impregnation processes 
3 
87 
Assembly press 
Manual, pneumatic, hydraulic or servo general 
assembly press 
12 
88 
Gantry crane 
A gantry crane of up to 10m span 
1 
89 
ALM rapid prototype, 
machines 
An additive manufacturing machine for the 
production of metallic or non-metallic 
components with a build volume of up to 
600mm x 600mm x 1000mm in each of the 
three orthogonal axes 
6 
90 
Laser part marking 
machine 
A laser part marking machine for identification 
of components in various materials and sizes 
4 
91 
General purpose oven 
or refrigerators 
Small general purpose ovens or refrigerators for 
components where precise temperature control 
is required with maximum capacity up to 
0.25m3 
6 
92 
PU Assembly tooling 
Automated nutrunner or fastener assembly tool 
with torque control and recording 
40 
IT equipment 
93 
CFD supercomputer 
<15,000 CPU core HPC cluster (or equivalent 
CPU/GPU hardware) with 512GB memory per 
node, 2Gbs interconnect including switches, 
1.0PB cluster storage 
1 
94 
Ethernet switches 
24 port or similar local area network connection 
switch for IT devices  
100