Capital Allowances Act 2001 section 104B

Application of Chapter to part of expenditure

Section 104B deals with how to handle capital expenditure on plant and machinery where only part of that expenditure qualifies as special rate expenditure.

• Where capital expenditure on a single item of plant or machinery is a mix of special rate and non-special rate expenditure, the two portions must be separated
• Each portion is treated as if it were expenditure on a separate item of plant or machinery for capital allowances purposes
• The special rate portion goes into the special rate pool (attracting writing-down allowances at the lower special rate), while the remainder goes into the main pool (attracting allowances at the higher main rate)
• Any apportionment between the two portions must be made on a just and reasonable basis