Capital Allowances Act 2001 section 269

Use of plant or machinery for business entertainment

Section 269 restricts capital allowances on plant or machinery when it is used to provide business entertainment.

• Plant or machinery used for business entertainment is treated as not used for the qualifying activity, denying capital allowances on that use
• Entertainment includes hospitality of any kind, plus anything incidental to it
• Entertainment provided purely for employees is not treated as business entertainment, unless employee provision is merely incidental to entertaining non-employees
• The restriction does not apply where providing the entertainment is part of the ordinary course of the qualifying activity, supplied either for payment or free of charge as public advertising