Capital Allowances Act 2001 section 95

Railway assets

Section 95 provides an exemption from long-life asset treatment for expenditure on railway assets incurred before 1 January 2011, where those assets are used wholly and exclusively for a railway business.

• Expenditure on railway assets incurred before 1 January 2011 and used solely for a railway business is excluded from long-life asset rules, meaning it qualifies for the standard writing-down allowance rate rather than the reduced long-life asset rate.
• Railway assets include locomotives, trams, carriages, wagons, and other rolling stock designed for railway use, as well as anything forming part of a railway station, railway track, or light maintenance depot and any associated apparatus.
• A railway business is one that provides a public service for carrying goods or passengers by railway in the United Kingdom or through the Channel Tunnel, and the exemption extends to rolling stock used on international journeys to or from the UK.
• The term "railway" is defined broadly by reference to the Railways Act 1993 and includes not only conventional railways but also tramways and other guided transport systems, so the exemption covers a wide range of rail-related infrastructure and vehicles.