Capital Allowances Act 2001

125 Other qualifying purposes

(1) Plant or machinery is used for a qualifying purpose at any time when subsection (2) or (4) applies.

(2) This subsection applies if any of the persons listed in subsection (3) uses the plant or machinery for the purpose of a qualifying activity without leasing it.

(3) The persons are—

(a) the person (“X”) who incurred expenditure on the provision of the plant or machinery;

(b) a person who is connected with X;

(c) a person who acquired the plant or machinery from X as a result of—

(i) a disposal on the occasion of which, or

(ii) two or more disposals on the occasion of each of which,

the qualifying activity carried on by the person making the disposal was treated as continuing under one of the relevant provisions of ICTA.

(4) This subsection applies if—

(a) a lessee uses the plant or machinery for the purposes of a qualifying activity without leasing it, and

(b) if he had incurred expenditure on the provision of the plant or machinery at that time, the expenditure would have fallen to be included, in whole or in part, in his available qualifying expenditure for a chargeable period.

(5) “The relevant provisions of ICTA” means section 113(2) or 114(1) (effect of change in persons carrying on a trade etc.).