Capital Allowances Act 2001 section 97

Expenditure within the relevant monetary limit: general

Section 97 provides a de minimis exemption so that expenditure on long-life assets below a monetary threshold is not treated as long-life asset expenditure.

• Expenditure on long-life assets is exempt from long-life asset treatment if it falls within the monetary limits and the relevant limit is not exceeded in the chargeable period
• The general annual de minimis threshold is £100,000, adjusted proportionally if the chargeable period is longer or shorter than a year
• If a company has associated companies, the £100,000 limit is divided among them in the same way as the small companies relief limit under corporation tax rules
• If the monetary limit is exceeded, all relevant expenditure on long-life assets in the period is treated as long-life asset expenditure, not just the amount above the threshold