Following Wednesday's meeting of the World Motor Sports Council in Paris, it was agreed the maximum number of cars permitted to enter would be increased to 26, two for each team.
After announcing a £30million cap in mid-March, the WMSC has now increased that figure by a further £10million.
The £40million figure will cover all team expenditure except:
* Marketing and hospitality
* Remuneration for test or race drivers, including any young driver programmes
* Fines or penalties imposed by the FIA
* Engine costs (for 2010 only, and specifically designed to retain the current manufacturers within the sport).
* Any expenditure the team can demonstrate has no influence on its performance in the championship
* Dividends paid from profits relating to participation in the championship.
The WMSC have also confirmed the ban on refuelling during races, to save on costs of transporting refuelling equipment and increase the incentive for engine builders to improve fuel economy, and on tyre warmers.
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