Capital Allowances Act 2001 section 106

The designated period

Section 106 defines the "designated period" during which the long-life asset rules can affect qualifying expenditure on plant or machinery.

• The designated period is normally 10 years from the date the plant or machinery is first brought into use.
• If the owner disposes of the asset before the 10-year period expires, the designated period ends on the date of disposal.
• A transfer to a connected person, or as part of a qualifying activity change meeting certain conditions, does not end the designated period — the original owner is treated as still owning the asset.
• Two conditions (A and B) govern when a change in the persons carrying on the qualifying activity preserves continuity of ownership for these purposes.