Capital Allowances Act 2001 section 77

Car used partly for purposes other than those of qualifying activity

Section 77 explains how capital allowances are adjusted when a car held in a single asset pool starts being used partly for non-business purposes.

• A car beginning to be used partly for non-business purposes does not trigger a disposal event or final chargeable period for the single asset pool
• Any writing-down allowance, balancing allowance, or balancing charge must be reduced to a just and reasonable amount reflecting the extent of non-business use
• When carrying forward unrelieved qualifying expenditure, any reduction made to a writing-down allowance under this section is ignored, so the full allowance is still deducted from the pool balance
• Where this section applies, the general mixed-use rules in Chapter 15 for plant and machinery do not apply, as this section provides the specific rule for cars