Capital Allowances Act 2001 section 185

Fixture on which a plant and machinery allowance has been claimed

Section 185 limits the amount of qualifying expenditure a new owner of a fixture can claim for plant and machinery allowances, where a previous owner has already claimed allowances on the same fixture.

• Where a previous owner claimed plant and machinery allowances on a fixture and brought a disposal value into account, the new owner's qualifying expenditure is capped at the "maximum allowable amount"
• The maximum allowable amount equals the disposal value the previous owner brought into account, plus any expenditure the new owner incurs on building alterations connected with installing the fixture
• If more than one disposal event has occurred, only the most recent disposal value is used in the calculation; and the restriction applies even if the current and past owner are the same person
• If the fixture was previously sold as a separate chattel (not as part of the land) between unconnected persons, earlier ownership history and disposal values before that sale can be disregarded