Capital Allowances Act 2001 section 13B

Use for other purposes of plant or machinery: property businesses

Section 13B deals with what happens when plant or machinery stops being used for one property business activity but continues to be used for a different property business activity.

• Applies when plant or machinery is switched from one relevant property business activity to another
• The person is treated as having incurred notional expenditure on the day after the original activity ceases
• Notional expenditure equals the market value at cessation, but is capped at the amount originally spent
• Relevant qualifying activities include UK property businesses, overseas property businesses, and furnished holiday lettings