Capital Allowances Act 2001 section 532

The general rule excluding contributions

Section 532 establishes the general rule that expenditure met by contributions from others — whether public bodies or private parties — is excluded from capital allowances claims.

• Where expenditure is met directly or indirectly by a public body or another person, the taxpayer is treated as not having incurred that expenditure for capital allowances purposes.
• A "public body" is broadly defined and includes the Crown, any government, and any public or local authority, whether in the United Kingdom or elsewhere.
• The general exclusion rule does not apply to Part 9 of the Act, which deals with dredging allowances — so contributions towards dredging expenditure are not caught by this restriction.
• The rule is subject to specific exceptions set out in sections 534 to 536, which allow certain types of contributions to be disregarded so that the taxpayer can still claim capital allowances on the full amount spent.