Capital Allowances Act 2001 section 85

Election for short-life asset treatment: procedure

Section 85 sets out the procedural requirements for making an election to treat plant or machinery as a short-life asset, including what information must be provided, the time limits for making the election, and the fact that the election cannot be reversed.

• The election must specify the plant or machinery concerned, the qualifying expenditure incurred, and the date the expenditure was incurred.
• The election is made by giving notice to HMRC, within the normal amendment deadline for income tax returns or within two years of the end of the relevant chargeable period for corporation tax.
• The relevant chargeable period is the period in which the qualifying expenditure was incurred, or if expenditure spans multiple periods, the first such period.
• Once made, the election is irrevocable, and HMRC will make all necessary assessments and adjustments to give it effect.