Capital Allowances Act 2001 Schedule 3 paragraph 38

Fixture on which a plant and machinery allowance has been claimed

Paragraph 38 of Schedule 3 provides a transitional rule that disapplies the restriction in section 185 (which caps qualifying expenditure on fixtures where a previous plant and machinery allowance has been claimed) for disposal events occurring before 24 July 1996.

• Section 185 restricts the qualifying expenditure a new owner can claim on a fixture where a previous owner has already claimed plant and machinery allowances on it.
• This transitional rule removes that restriction where the earlier owner's disposal event took place before 24 July 1996.
• The relevant disposal event is the one that required the previous owner to bring a disposal value into account under section 185(1)(d).
• In practice, this means that pre-24 July 1996 transactions involving fixtures are not caught by the section 185 cap on qualifying expenditure.