Capital Allowances Act 2001 section 80

Vehicles provided for purposes of employment or office

Section 80 deals with the situation where a person provides a vehicle (such as a car or van) to an employee or office holder for the purposes of their employment or office, and how this affects the capital allowances available on that vehicle.

• When a vehicle is provided by an employer for an employee's or office holder's use, it is treated as being used partly for purposes other than the qualifying activity.
• This means the employer cannot claim full capital allowances on the vehicle — the allowances must be restricted to reflect the non-business element of the vehicle's use.
• The restriction applies regardless of the actual pattern of use by the employee, because providing a vehicle to an employee inherently involves a non-business purpose element.
• This provision was amended by the Finance Act 2001 and works alongside the broader rules on partial business use of plant and machinery.

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