Capital Allowances Act 2001 section 264

Partnership using property of a partner

Section 264 deals with the capital allowances treatment of plant or machinery that is owned by an individual partner but used in the partnership's qualifying activity.

• Where a partner's own plant or machinery is used in the partnership business but is not partnership property, allowances are given as though the asset belonged to the partnership
• All actions taken by or affecting the individual partner in relation to that asset are treated as if they had been taken by or affected all the partners
• No disposal value needs to be brought into account when one partner sells or gives the asset to another partner, provided it continues to be used in the partnership's qualifying activity
• These rules do not apply where the partner leases the asset to the partnership or receives a deductible payment from the partnership for its use