Capital Allowances Act 2001 section 92

Application of Chapter to part of expenditure

Section 92 deals with situations where the special leasing rules in this Chapter apply to only part of the capital expenditure on an item of plant or machinery, and explains how that expenditure should be split.

• Sometimes only part of the capital expenditure on plant or machinery falls within the scope of this Chapter's special leasing provisions.
• Where this occurs, the portion of expenditure covered by this Chapter is treated as if it relates to a separate asset from the portion that falls outside the Chapter.
• This separation ensures that the correct capital allowances rules are applied to each portion of the expenditure independently.
• Where necessary, the total expenditure must be apportioned on a reasonable basis between the part subject to this Chapter and the part that is not.