Capital Allowances Act 2001 section 209

Meaning of "partial depreciation subsidy"

Section 209 defines the term "partial depreciation subsidy" as used throughout this Chapter of the Act.

• A partial depreciation subsidy is a payment made directly or indirectly to someone who has incurred qualifying expenditure on plant or machinery for a qualifying activity
• The payment must relate to, or take account of, only part of the depreciation of the plant or machinery caused by its use in that qualifying activity
• The payment must not be treated as taxable income of the recipient, nor included in the calculation of profits of any qualifying activity they carry on
• All three conditions must be met simultaneously for a payment to qualify as a partial depreciation subsidy