Capital Allowances Act 2001 section 100

Exceeding the monetary limit

Section 100 explains how to determine whether the annual monetary limit for long-life asset expenditure has been exceeded in a chargeable period, and how expenditure spread across multiple periods under a single contract is treated for this purpose.

• The monetary limit is exceeded when total qualifying long-life asset expenditure in a chargeable period goes above the permitted threshold (generally £100,000 per year)
• Qualifying expenditure includes actual long-life asset expenditure and expenditure that would be long-life asset expenditure were it not for the de minimis exemption
• Where a contract for plant or machinery results in capital expenditure falling into different chargeable periods, all expenditure under that contract is treated as incurred in the first period in which any of it arises
• If the limit is exceeded, all relevant expenditure in the period is treated as long-life asset expenditure, attracting the lower writing-down allowance rate rather than the standard rate