C1Part 2 Plant and machinery allowances

Annotations:
Modifications etc. (not altering text)

Chapter 10 Long-life assets

Expenditure excluded from being long-life asset expenditure

98 Expenditure to which the monetary limits apply

1

The monetary limits apply to expenditure incurred by an individual for a chargeable period if—

a

the expenditure was incurred by him for the purposes of a qualifying activity carried on by him,

b

the whole of his time is substantially devoted in that period to the carrying on of that qualifying activity, and

c

the expenditure is not within subsection (4).

2

The monetary limits apply to expenditure incurred by a partnership for a chargeable period if—

a

all of the members of the partnership are individuals,

b

the expenditure was incurred by the partnership for the purposes of a qualifying activity carried on by it,

c

at all times throughout that period at least half the partners for the time being devote the whole or a substantial part of their time to the carrying on of that qualifying activity, and

d

the expenditure is not within subsection (4).

3

The monetary limits apply for the purposes of corporation tax to any expenditure incurred by a company for a chargeable period other than expenditure within subsection (4).

4

Expenditure is within this subsection if it is—

a

incurred on the provision of a share in plant or machinery,

b

treated as a result of section 538 (contribution allowances: plant and machinery) as incurred on the provision of plant or machinery, or

c

incurred on the provision of plant or machinery for leasing (whether or not the leasing is in the course of a trade).