Capital Allowances Act 2001 section 270

Shares in plant or machinery

Section 270 explains how capital allowances apply when a person owns a share (rather than the whole) of an item of plant or machinery.

• A share in plant or machinery is treated in the same way as a part of an asset for capital allowances purposes.
• The owner of a share can claim plant and machinery allowances on that share, just as they could on a distinct part of an asset.
• The share is only regarded as being used for a qualifying activity for as long as the underlying plant or machinery itself is actually being used for that qualifying activity.
• Once the plant or machinery ceases to be used for the qualifying activity, the share is no longer treated as being used for that activity either.