Capital Allowances Act 2001 section 38

Production animals etc.

Section 38 excludes expenditure on production animals and shares in such animals from qualifying for plant and machinery capital allowances.

• Spending on animals or creatures kept for trade purposes (as covered by the trading income rules) does not qualify for plant and machinery allowances
• Spending on animals or creatures subject to the herd basis rules is similarly excluded from qualifying expenditure
• Shares in any such animals or creatures are also excluded, so part-ownership does not change the position
• These animals already receive their own specific tax treatment under the trading income and corporation tax rules, so capital allowances would represent a double benefit